Tempus AI (NASDAQ:TEM) Shares Gap Up - What's Next?

Tempus AI, Inc. (NASDAQ:TEM) saw a significant rise in its stock price before the market opened on Thursday. The stock closed at $50.77 the previous day but opened at $52.82, showing an early gain. As trading progressed, Tempus AI shares reached a last traded price of $55.66, with a substantial volume of 2,764,572 shares exchanged.

Wall Street Analysts Provide Insights

Several analysts have shared their perspectives on Tempus AI. Loop Capital reduced its price target from $57.00 to $52.00 while maintaining a "buy" recommendation on the stock. Stifel Nicolaus adjusted their rating from "buy" to "hold," raising the price objective from $45.00 to $65.00. Guggenheim recently initiated coverage on Tempus AI with a "buy" rating and a target price of $74.00. Needham & Company reaffirmed a "buy" stance with a $56.00 price target, while Piper Sandler upgraded its neutral rating and raised the price target to $70.00, up from $40.00. Currently, three analysts rate the stock as a hold while nine analysts recommend a buy, resulting in a consensus rating of "Moderate Buy" along with an average target price of $56.36, as per MarketBeat.com.

Tempus AI's Price and Financial Performance

Tempus AI holds a current ratio of 2.69 and a quick ratio of 2.55, alongside a notable debt-to-equity ratio of 8.17. The company’s fifty-day moving average stands at $44.11, while the two-hundred-day moving average is at $47.97.

Insider Transactions at Tempus AI

Recent insider activity includes EVP Andrew Polovin selling 51,504 shares on December 11th, with the shares sold at an average price of $42.39, totaling $2,183,254.56. Following this sale, Polovin owns 246,085 shares valued at approximately $10,431,543.15, representing a 17.31% drop in ownership. Director David R. Epstein also sold 620 shares on the same day for an average price of $41.81, amounting to $25,922.20, leading to a 2.17% decrease in ownership. Over the past three months, insiders sold a total of 1,862,758 shares valued at $79,585,675.

Institutional Investors' Engagement with Tempus AI

Hedge funds and institutional investors have recently made multiple adjustments to their positions in Tempus AI. Kovitz Investment Group Partners LLC acquired a new stake valued at approximately $1,367,000 during the third quarter. Sumitomo Mitsui Trust Group Inc. significantly increased its holdings by 1,591.2%, now owning 1,217,699 shares worth $68,922,000 after adding 1,145,698 shares in the last quarter. Captrust Financial Advisors also entered a new position valued at around $2,726,000, while Sigma Planning Corp acquired additional shares valued at approximately $1,323,000. Moreover, Dakota Wealth Management invested around $1,185,000 in Tempus AI during the same quarter. Currently, around 24.22% of the stock is owned by institutional investors and hedge funds.

About Tempus AI

Tempus AI Inc. is at the forefront of advancing precision medicine through the practical application of artificial intelligence, primarily within the healthcare sector. The company offers AI-enabled precision medicine solutions that assist physicians in providing personalized patient care, while also contributing to the discovery and development of effective therapeutics.

Investment Considerations

Before making any investment decisions regarding Tempus AI, potential investors may want to review the stock's current standing in the market. MarketBeat monitors high-performing research analysts and their stock recommendations, noting that Tempus AI is not among the stocks top analysts are currently pushing for purchase.

While the consensus rating for Tempus AI reflects a "Moderate Buy," there are indications from leading analysts suggesting that there might be better investment opportunities available in the market.

Tempus, AI, Stock