Tempus AI (NASDAQ:TEM) Shares Gap Down – Time to Sell?

Shares of Tempus AI, Inc. (NASDAQ:TEM) gapped down prior to trading on Tuesday . The stock had previously closed at $63.47, but opened at $62.20. Tempus AI shares last traded at $61.10, with a volume of 5,003,975 shares traded.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on TEM. JPMorgan Chase & Co. downgraded shares of Tempus AI from an “overweight” rating to a “neutral” rating and raised their target price for the company from $50.00 to $55.00 in a research report on Tuesday, February 25th. BTIG Research began coverage on shares of Tempus AI in a research note on Monday, April 21st. They set a “buy” rating and a $60.00 price objective for the company. Morgan Stanley raised their price objective on Tempus AI from $60.00 to $65.00 and gave the company an “overweight” rating in a report on Friday, May 9th. TD Cowen reaffirmed a “buy” rating and issued a $74.00 target price (up previously from $58.00) on shares of Tempus AI in a research report on Wednesday, February 5th. Finally, William Blair reiterated a “market perform” rating on shares of Tempus AI in a report on Tuesday, February 25th. Six investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $63.42.

Tempus AI Price Performance

The company has a current ratio of 2.69, a quick ratio of 2.55 and a debt-to-equity ratio of 8.17. The firm has a market capitalization of $10.87 billion and a price-to-earnings ratio of -8.05. The company’s 50 day moving average is $52.78 and its 200-day moving average is $51.98.

Tempus AI (NASDAQ:TEM) last released its quarterly earnings data on Tuesday, May 6th. The company reported ($0.24) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.27) by $0.03. The business had revenue of $255.74 million during the quarter, compared to the consensus estimate of $248.13 million. The business’s revenue for the quarter was up 75.4% compared to the same quarter last year. Equities research analysts anticipate that Tempus AI, Inc. will post -6.15 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO James William Rogers sold 23,121 shares of the company’s stock in a transaction that occurred on Tuesday, May 20th. The stock was sold at an average price of $63.27, for a total value of $1,462,865.67. Following the transaction, the chief financial officer now owns 146,001 shares of the company’s stock, valued at approximately $9,237,483.27. This represents a 13.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Andrew Polovin sold 13,135 shares of the stock in a transaction that occurred on Tuesday, March 18th. The stock was sold at an average price of $45.98, for a total value of $603,947.30. Following the transaction, the executive vice president now owns 154,171 shares in the company, valued at approximately $7,088,782.58. This trade represents a 7.85% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 139,888 shares of company stock valued at $7,938,111 over the last ninety days. 27.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in shares of Tempus AI by 6,247.5% in the first quarter. Vanguard Group Inc. now owns 5,995,117 shares of the company’s stock valued at $289,204,000 after acquiring an additional 5,900,668 shares in the last quarter. ARK Investment Management LLC boosted its holdings in Tempus AI by 132.1% in the 4th quarter. ARK Investment Management LLC now owns 5,519,644 shares of the company’s stock valued at $186,343,000 after purchasing an additional 3,141,487 shares during the period. Nikko Asset Management Americas Inc. boosted its holdings in Tempus AI by 166.0% in the 4th quarter. Nikko Asset Management Americas Inc. now owns 3,239,093 shares of the company’s stock valued at $109,352,000 after purchasing an additional 2,021,394 shares during the period. Sumitomo Mitsui Trust Group Inc. grew its position in shares of Tempus AI by 166.0% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,239,093 shares of the company’s stock worth $109,352,000 after purchasing an additional 2,021,394 shares in the last quarter. Finally, Franklin Resources Inc. grew its position in shares of Tempus AI by 240.5% during the 4th quarter. Franklin Resources Inc. now owns 2,762,173 shares of the company’s stock worth $93,251,000 after purchasing an additional 1,950,862 shares in the last quarter. Institutional investors own 24.22% of the company’s stock.

About Tempus AI

Tempus AI Inc is a technology company advancing precision medicine through the practical application of artificial intelligence principally in healthcare. The company provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics.