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

Tempus AI, Inc. (NASDAQ:TEM) shares experienced a notable decline before trading began on Tuesday. Previously closing at $49.87, the stock opened at $47.79. The latest trading session saw Tempus AI shares drop further to $46.51, with a trading volume of 2,005,129 shares.

Analysts Set New Price Targets

Recent reports from several equities analysts offer mixed views on Tempus AI's stock prospects. Needham & Company LLC reassessed their price target, increasing it from $56.00 to $70.00 while maintaining a "buy" rating. Meanwhile, Morgan Stanley has also raised their target from $50.00 to $60.00, categorizing the stock as "overweight". On the other hand, Wolfe Research downgraded Tempus AI from a "strong-buy" to "hold". William Blair reaffirmed a "market perform" rating, and Loop Capital adjusted their price target downward from $57.00 to $52.00, also under a "buy" rating. Overall, six analysts recommend a hold, and six suggest buying, leading to a general rating of "Moderate Buy" with a consensus target price of $61.18.

Tempus AI Stock Performance

Looking at the company's stock performance, conflicting signals have emerged. Tempus AI currently has a current ratio of 2.69, a quick ratio of 2.55, and a rather high debt-to-equity ratio of 8.17. Its 50-day moving average stands at $55.51, while the 200-day moving average is at $51.60.

Insider Activity

Further developments include significant insider trading activities. CAO Ryan M. Bartolucci sold 13,770 shares on January 31 at an average price of $60.00, totaling $826,200. Following this transaction, Bartolucci holds 57,237 shares worth approximately $3,434,220. This sale reflects a 19.39% decrease in their ownership. In another significant trade, CEO Eric P. Lefkofsky sold a substantial 3,240,234 shares on February 27 at an average price of $58.75, amounting to about $190,363,747.50. Post-transaction, Lefkofsky retains 4,895,589 shares valued at approximately $287,615,853.75, indicating a 39.83% drop in their ownership. Over the last three months, insiders have sold a total of 5,749,469 shares worth $322,529,733.

Institutional Investors Weigh In On Tempus AI

Several institutional investors and hedge funds have made changes to their holdings in Tempus AI recently. For instance, First Horizon Advisors Inc. acquired a new stake worth around $30,000 in the third quarter. Other institutional investors include Operose Advisors LLC, which invested about $25,000 in the fourth quarter, and Farther Finance Advisors LLC, which entered with a stake worth approximately $34,000. Prestige Wealth Management Group raised its ownership by 910.4% in the fourth quarter, now holding 1,071 shares valued at $36,000 after acquiring an additional 965 shares. Additionally, NewEdge Advisors LLC invested a new position worth $49,000 in the fourth quarter. Overall, institutional investors collectively hold about 24.22% of Tempus AI's stock.

Tempus AI Company Profile

Tempus AI Inc is a tech firm focused on enhancing precision medicine through artificial intelligence, mainly in the healthcare sector. Their mission involves providing AI-enabled solutions that assist physicians in offering personalized patient care while also fostering the discovery and delivery of effective therapeutics.

stocks, analysis, investors