Tempus AI Target of Unusually High Options Trading (NASDAQ:TEM)

Tempus AI, Inc. (NASDAQ:TEM) saw some unusual options trading activity on Wednesday. Investors purchased 40,671 call options on the stock. This is an increase of 57% compared to the typical daily volume of 25,968 call options.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. HC Wainwright cut their price objective on Tempus AI from $64.00 to $56.00 and set a “buy” rating on the stock in a report on Monday, August 3rd. Piper Sandler dropped their target price on Tempus AI from $58.00 to $56.00 and set a “neutral” rating for the company in a research report on Tuesday, August 4th. BTIG Research cut their price target on Tempus AI from $80.00 to $70.00 and set a “buy” rating on the stock in a research note on Monday, August 3rd. Needham & Company LLC restated a “buy” rating and set a $75.00 price target on shares of Tempus AI in a report on Friday, July 31st. Finally, Wall Street Zen upgraded Tempus AI from a “sell” rating to a “hold” rating in a report on Saturday, July 25th. Nine investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $64.92.

Insider Activity at Tempus AI

In other Tempus AI news, CEO Eric P. Lefkofsky sold 250,000 shares of the firm’s stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $42.06, for a total value of $10,515,000.00. Following the sale, the chief executive officer owned 200,000 shares in the company, valued at $8,412,000. This trade represents a 55.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jennifer A. Doudna sold 2,673 shares of the business’s stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $55.00, for a total transaction of $147,015.00. Following the sale, the director directly owned 25,942 shares in the company, valued at approximately $1,426,810. The trade was a 9.34% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 684,424 shares of company stock valued at $33,255,565. Company insiders own 24.26% of the company’s stock.

Hedge Funds Weigh In On Tempus AI

A number of hedge funds have recently made changes to their positions in TEM. Royal Bank of Canada boosted its holdings in Tempus AI by 201.2% in the first quarter. Royal Bank of Canada now owns 25,988 shares of the company’s stock valued at $1,253,000 after acquiring an additional 17,359 shares during the last quarter. Rhumbline Advisers acquired a new stake in shares of Tempus AI during the first quarter worth $116,000. Prudential Financial Inc. acquired a new stake in shares of Tempus AI during the second quarter worth $276,000. Russell Investments Group Ltd. raised its stake in Tempus AI by 21.3% during the second quarter. Russell Investments Group Ltd. now owns 6,527 shares of the company’s stock worth $415,000 after buying an additional 1,146 shares during the last quarter. Finally, Invesco Ltd. raised its stake in Tempus AI by 2,926.6% during the second quarter. Invesco Ltd. now owns 211,621 shares of the company’s stock worth $13,446,000 after buying an additional 204,629 shares during the last quarter. 24.22% of the stock is currently owned by institutional investors.

Tempus AI Trading Up 20.1%

Shares of NASDAQ:TEM traded up $9.90 during mid-day trading on Wednesday, reaching $59.26. 9,242,012 shares of the company’s stock were exchanged, compared to its average volume of 5,764,655. The company has a debt-to-equity ratio of 3.06, a quick ratio of 3.16 and a current ratio of 3.30. Tempus AI has a twelve month low of $40.77 and a twelve month high of $104.32. The firm has a market capitalization of $10.69 billion, a price-to-earnings ratio of -40.78 and a beta of 3.58. The business’s fifty day moving average price is $51.86 and its 200-day moving average price is $51.18.

Tempus AI (NASDAQ:TEM) last posted its quarterly earnings data on Thursday, July 30th. The company reported ($0.04) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.14) by $0.10. The business had revenue of $382.49 million during the quarter, compared to the consensus estimate of $379.69 million. Tempus AI had a negative return on equity of 50.28% and a negative net margin of 17.77%.Tempus AI’s quarterly revenue was up 21.6% on a year-over-year basis. During the same period in the prior year, the business posted ($0.22) earnings per share. On average, research analysts predict that Tempus AI will post -1.38 EPS for the current fiscal year.

About Tempus AI

Tempus is a technology-driven healthcare company that applies artificial intelligence and machine learning to clinical and molecular data in order to advance precision medicine. Its primary focus lies in oncology, where the company offers comprehensive genomic profiling, digital pathology services and data-driven insights to inform personalized cancer care. By integrating DNA and RNA sequencing with structured clinical information, Tempus enables clinicians and researchers to identify targeted treatment options for patients based on the genetic characteristics of their tumors.

The company’s core offering centers on a scalable, cloud-based analytics platform that aggregates vast amounts of molecular and clinical data.