Tempus AI (NASDAQ:TEM) Shares Down 7.4% on Analyst Downgrade

Tempus AI, Inc. (NASDAQ:TEM)’s share price traded down 7.4% during mid-day trading on Wednesday after JPMorgan Chase & Co. lowered their price target on the stock from $80.00 to $60.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Tempus AI traded as low as $53.80 and last traded at $53.6710. 4,198,853 shares changed hands during mid-day trading, a decline of 26% from the average session volume of 5,636,385 shares. The stock had previously closed at $57.95.

A number of other equities research analysts have also recently weighed in on TEM. Morgan Stanley boosted their price target on shares of Tempus AI from $80.00 to $85.00 and gave the company an “overweight” rating in a research report on Monday, December 1st. BTIG Research cut their target price on Tempus AI from $105.00 to $90.00 and set a “buy” rating on the stock in a research report on Wednesday. Needham & Company LLC reduced their target price on Tempus AI from $100.00 to $75.00 and set a “buy” rating for the company in a report on Wednesday. Robert W. Baird assumed coverage on Tempus AI in a research report on Tuesday, February 17th. They issued an “outperform” rating and a $59.00 target price for the company. Finally, Mizuho initiated coverage on Tempus AI in a research report on Thursday, February 19th. They set an “outperform” rating and a $100.00 price target on the stock. Eight equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $79.31.

Insiders Place Their Bets

In related news, CFO James William Rogers sold 10,084 shares of the business’s stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $59.05, for a total value of $595,460.20. Following the transaction, the chief financial officer owned 101,166 shares in the company, valued at $5,973,852.30. The trade was a 9.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Erik Phelps sold 9,464 shares of the company’s stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $59.43, for a total value of $562,445.52. Following the sale, the executive vice president directly owned 79,816 shares of the company’s stock, valued at approximately $4,743,464.88. This represents a 10.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 596,035 shares of company stock valued at $37,505,125. 26.27% of the stock is owned by insiders.

Tempus AI News Summary

Here are the key news stories impacting Tempus AI this week:

• Positive Sentiment: Very strong top-line and guidance: Q4 revenue surged ~83% (organic ~33%), diagnostics and data businesses accelerated, and management raised full‑year 2026 revenue guidance to roughly $1.59B — evidence of sustained demand and growth tailwinds. Tempus AI Sold Off After a Beat—But the Rebound Case Is Building
• Positive Sentiment: Margins and profitability trajectory improving: gross profit and adjusted EBITDA trends improved (adjusted EBITDA moved toward positive vs. prior year), narrowing losses compared with prior periods — a potential catalyst if the inflection continues. Earnings Summary: Tempus AI Q4
• Neutral Sentiment: Mixed analyst reactions: several firms reaffirm buy/overweight views, but multiple price‑target trims followed the print (JPMorgan cut to $60 neutral; Needham and BTIG trimmed targets while maintaining buys in some cases) — shows divided view on near‑term risk vs. longer‑term upside. Analyst Price Target Coverage (Benzinga links)
• Positive Sentiment: Institutional accumulation: data show meaningful institutional buying since IPO and heavy Q1 accumulation, which can stabilize the stock and support any rebound. MarketBeat: Institutional Trends
• Negative Sentiment: Market reacted to profitability/earnings detail: EPS/margin metrics missed or showed wider-than-expected losses on some measures (after‑hours weakness reported), prompting traders to sell despite the revenue beat. Tempus AI Posts 83% Revenue Growth Yet Stumbles on Full Year Profitability Target
• Negative Sentiment: Ongoing structural concerns: elevated debt levels, 12% short interest, and market worries about AI displacing parts of the business create downside risk until profitability and cadence of organic growth are unquestionable. Tempus AI: No AI Interruption Detected

Institutional Investors Weigh In On Tempus AI

A number of hedge funds have recently added to or reduced their stakes in TEM. Cranbrook Wealth Management LLC acquired a new position in Tempus AI during the 3rd quarter worth approximately $25,000. JPL Wealth Management LLC purchased a new stake in shares of Tempus AI in the third quarter valued at approximately $26,000. Los Angeles Capital Management LLC acquired a new position in Tempus AI during the fourth quarter worth $27,000. GAMMA Investing LLC acquired a new position in Tempus AI during the third quarter worth $28,000. Finally, Allworth Financial LP raised its position in Tempus AI by 5,000.0% in the second quarter. Allworth Financial LP now owns 459 shares of the company’s stock worth $29,000 after acquiring an additional 450 shares in the last quarter. Institutional investors and hedge funds own 24.22% of the company’s stock.

Tempus AI Trading Down 7.3%

The company has a market cap of $9.56 billion, a price-to-earnings ratio of -38.09 and a beta of 5.22. The business has a fifty day simple moving average of $61.71 and a 200 day simple moving average of $73.46. The company has a quick ratio of 3.12, a current ratio of 3.28 and a debt-to-equity ratio of 2.45.

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.