Tempus AI (NASDAQ:TEM) Shares Gap Up – Should You Buy?

Tempus AI, Inc. (NASDAQ:TEMGet Free Report)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $63.05, but opened at $65.64. Tempus AI shares last traded at $64.6920, with a volume of 1,265,656 shares changing hands.

More Tempus AI News

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

  • Positive Sentiment: Piper Sandler upgraded Tempus AI (TEM) to Overweight from Neutral and raised its price target to $76 from $56, citing growth drivers that could support further gains. Piper Sandler upgrade
  • Positive Sentiment: Cantor Fitzgerald initiated coverage with an Overweight rating and an $80 price target, implying meaningful upside from recent trading levels. The firm highlighted Tempus’ data and applications segment as an important source of growth and value. Cantor Fitzgerald coverage
  • Positive Sentiment: Analyst commentary argues that Tempus’ data business is being valued more like a conventional vendor than a scalable technology platform. If Tempus can demonstrate recurring, higher-margin data revenue and broader platform adoption, investors could assign it a higher valuation multiple. Tempus AI data valuation analysis
  • Neutral Sentiment: The latest analyst reports improve sentiment, but the broader consensus remains Hold, with an average price target of $67.23. Tempus recently exceeded quarterly EPS and revenue estimates, while revenue increased 21.6% year over year; however, the company remains unprofitable and analysts expect a full-year loss.
  • Negative Sentiment: Director Nadja West sold 3,000 shares for approximately $207,000, reducing her position by 8.58%. The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, which reduces its significance as a discretionary bearish signal but may still weigh modestly on sentiment. Tempus AI director share sale

Analyst Ratings Changes

A number of brokerages recently issued reports on TEM. Weiss Ratings cut shares of Tempus AI from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Thursday, August 27th. TD Cowen restated a “buy” rating on shares of Tempus AI in a research note on Wednesday, July 15th. Lake Street Capital downgraded Tempus AI to a “hold” rating in a report on Monday, July 20th. Piper Sandler upgraded Tempus AI from a “neutral” rating to an “overweight” rating and lifted their target price for the company from $56.00 to $76.00 in a research report on Tuesday. Finally, BTIG Research boosted their target price on Tempus AI from $70.00 to $80.00 and gave the stock a “buy” rating in a research note on Thursday, August 20th. Eleven equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Tempus AI currently has an average rating of “Moderate Buy” and an average target price of $68.93.

View Our Latest Research Report on Tempus AI

Tempus AI Price Performance

The firm has a market cap of $11.18 billion, a P/E ratio of -43.01 and a beta of 3.71. The company has a current ratio of 3.30, a quick ratio of 3.16 and a debt-to-equity ratio of 3.06. The business has a 50-day moving average of $55.41 and a two-hundred day moving average of $51.95.

Tempus AI (NASDAQ:TEMGet Free Report) last posted its earnings results on Thursday, July 30th. The company reported ($0.04) EPS for the quarter, beating the consensus estimate of ($0.14) by $0.10. The firm 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%.The business’s quarterly revenue was up 21.6% on a year-over-year basis. During the same period last year, the company earned ($0.22) earnings per share. On average, sell-side analysts anticipate that Tempus AI, Inc. will post -1.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Eric P. Lefkofsky sold 250,000 shares of the company’s stock in a transaction 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 directly owned 200,000 shares of the company’s stock, valued at approximately $8,412,000. This represents a 55.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ryan Fukushima sold 41,095 shares of Tempus AI stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $49.61, for a total transaction of $2,038,722.95. Following the transaction, the chief executive officer directly owned 562,463 shares of the company’s stock, valued at $27,903,789.43. This represents a 6.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 1,043,988 shares of company stock valued at $56,963,417 in the last quarter. 24.26% of the stock is currently owned by company insiders.

Institutional Trading of Tempus AI

Large investors have recently modified their holdings of the stock. ARK Investment Management LLC increased its stake in Tempus AI by 5.3% in the fourth quarter. ARK Investment Management LLC now owns 7,557,583 shares of the company’s stock valued at $446,275,000 after purchasing an additional 381,816 shares in the last quarter. California State Teachers Retirement System boosted its holdings in Tempus AI by 6,379.2% in the second quarter. California State Teachers Retirement System now owns 6,977,205 shares of the company’s stock worth $404,189,000 after acquiring an additional 6,869,519 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. grew its stake in Tempus AI by 23.4% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,326,313 shares of the company’s stock valued at $195,636,000 after acquiring an additional 821,490 shares during the period. Amova Asset Management Americas Inc. grew its stake in Tempus AI by 23.4% in the first quarter. Amova Asset Management Americas Inc. now owns 4,326,313 shares of the company’s stock valued at $195,549,000 after acquiring an additional 821,490 shares during the period. Finally, Geode Capital Management LLC lifted its holdings in shares of Tempus AI by 8.2% in the 4th quarter. Geode Capital Management LLC now owns 1,870,510 shares of the company’s stock worth $110,478,000 after purchasing an additional 141,680 shares in the last quarter. Institutional investors and hedge funds own 24.22% of the company’s stock.

Tempus AI Company Profile

(Get Free Report)

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.

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