Tempus AI (NASDAQ:TEM) Shares Gap Up on Earnings Beat

Tempus AI, Inc. (NASDAQ:TEM) shares gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $58.74, but opened at $64.20. Tempus AI shares last traded at $60.30, with a volume of 14,472,008 shares trading hands.

The company reported ($0.22) earnings per share for the quarter, topping the consensus estimate of ($0.23) by $0.01. The firm had revenue of $314.64 million for the quarter, compared to analysts’ expectations of $296.84 million. Tempus AI had a negative net margin of 88.27% and a negative return on equity of 533.21%. The company’s quarterly revenue was up 89.5% compared to the same quarter last year. During the same period in the prior year, the firm earned ($6.86) earnings per share.

Analysts Set New Price Targets

Several analysts have weighed in on TEM shares. Needham & Company LLC reaffirmed a “buy” rating and set a $70.00 price objective on shares of Tempus AI in a research note on Friday. Piper Sandler reaffirmed a “neutral” rating on shares of Tempus AI in a research note on Friday. Guggenheim upped their price objective on shares of Tempus AI from $65.00 to $75.00 and gave the stock a “buy” rating in a research note on Monday, June 30th. BTIG Research initiated coverage on shares of Tempus AI in a research note on Friday. They set a “buy” rating and a $60.00 price objective on the stock. Finally, Morgan Stanley increased their price target on shares of Tempus AI from $60.00 to $65.00 and gave the company an “overweight” rating in a research note on Friday, May 9th. Six analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $65.09.

Insider Buying and Selling at Tempus AI

In other news, Director Theodore Leonsis sold 205,847 shares of the stock in a transaction that occurred on Wednesday, June 11th. The shares were sold at an average price of $67.66, for a total transaction of $13,927,608.02. Following the sale, the director directly owned 15,511 shares of the company’s stock, valued at $1,049,474.26. This represents a 92.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Eric P. Lefkofsky sold 166,250 shares of the stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $62.87, for a total transaction of $10,452,137.50. Following the completion of the transaction, the chief executive officer owned 9,274,033 shares in the company, valued at $583,058,454.71. This represents a 1.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 758,772 shares of company stock valued at $51,005,175 over the last three months. Insiders own 27.60% of the company’s stock.

Hedge Funds Weigh In On Tempus AI

Several large investors have recently bought and sold shares of TEM. LPL Financial LLC lifted its holdings in Tempus AI by 120.3% in the fourth quarter. LPL Financial LLC now owns 44,006 shares of the company’s stock valued at $1,486,000 after buying an additional 24,032 shares during the period. Wells Fargo & Company MN lifted its holdings in Tempus AI by 13.2% in the fourth quarter. Wells Fargo & Company MN now owns 2,384 shares of the company’s stock valued at $80,000 after buying an additional 278 shares during the period. Envestnet Asset Management Inc. lifted its holdings in Tempus AI by 157.7% in the fourth quarter. Envestnet Asset Management Inc. now owns 44,119 shares of the company’s stock valued at $1,489,000 after buying an additional 26,998 shares during the period. Legal & General Group Plc lifted its holdings in Tempus AI by 40.6% in the fourth quarter. Legal & General Group Plc now owns 358,432 shares of the company’s stock valued at $12,101,000 after buying an additional 103,464 shares during the period. Finally, Raymond James Financial Inc. acquired a new position in Tempus AI in the fourth quarter valued at approximately $3,757,000. 24.22% of the stock is currently owned by institutional investors and hedge funds.

Tempus AI Price Performance

The company’s fifty day moving average is $62.47 and its two-hundred day moving average is $58.00. The firm has a market capitalization of $10.54 billion, a price-to-earnings ratio of -7.80 and a beta of 4.98. The company has a quick ratio of 1.56, a current ratio of 1.71 and a debt-to-equity ratio of 2.45.

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.