Traders Purchase High Volume of Tempus AI Call Options (NASDAQ:TEM)

Tempus AI, Inc. (NASDAQ:TEM) was the target of some unusual options trading on Friday. Traders bought 35,062 call options on the stock. This represents an increase of approximately 61% compared to the average volume of 21,735 call options.

Insiders Place Their Bets

In related news, CEO Eric P. Lefkofsky sold 166,250 shares of the company’s stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $46.70, for a total value of $7,763,875.00. Following the transaction, the chief executive officer owned 8,808,533 shares in the company, valued at approximately $411,358,491.10. This represents a 1.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Andrew Polovin sold 8,703 shares of the company’s stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total value of $383,541.21. Following the completion of the transaction, the executive vice president owned 128,215 shares in the company, valued at approximately $5,650,435.05. The trade was a 6.36% 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 have sold 558,307 shares of company stock valued at $26,599,589 in the last quarter. 24.26% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Avidity Partners Management LP bought a new position in shares of Tempus AI in the first quarter worth $1,130,000. Silverback Asset Management LLC increased its stake in Tempus AI by 44.5% in the first quarter. Silverback Asset Management LLC now owns 35,700 shares of the company’s stock valued at $1,614,000 after acquiring an additional 11,000 shares during the last quarter. Vestor Capital LLC increased its stake in Tempus AI by 338.2% in the first quarter. Vestor Capital LLC now owns 1,538 shares of the company’s stock valued at $70,000 after acquiring an additional 1,187 shares during the last quarter. Arkadios Wealth Advisors increased its stake in Tempus AI by 9.6% in the first quarter. Arkadios Wealth Advisors now owns 4,963 shares of the company’s stock valued at $224,000 after acquiring an additional 435 shares during the last quarter. Finally, Amundi increased its stake in Tempus AI by 30.4% in the first quarter. Amundi now owns 18,959 shares of the company’s stock valued at $857,000 after acquiring an additional 4,417 shares during the last quarter. Institutional investors own 24.22% of the company’s stock.

Tempus AI Trading Down 1.6%

Tempus AI stock opened at $50.47 on Friday. The stock has a market cap of $9.06 billion, a P/E ratio of -29.34 and a beta of 3.99. Tempus AI has a fifty-two week low of $41.73 and a fifty-two week high of $104.32. The firm’s fifty day moving average price is $48.73 and its 200-day moving average price is $58.19. The company has a debt-to-equity ratio of 2.96, a quick ratio of 3.15 and a current ratio of 3.31.

Tempus AI (NASDAQ:TEM) last released its quarterly earnings results on Tuesday, May 5th. The company reported ($0.13) earnings per share for the quarter, topping the consensus estimate of ($0.21) by $0.08. The firm had revenue of $348.12 million for the quarter, compared to analysts’ expectations of $345.44 million. Tempus AI had a negative net margin of 22.20% and a negative return on equity of 53.83%. The business’s quarterly revenue was up 36.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.24) earnings per share. Equities research analysts forecast that Tempus AI will post -1.35 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

TEM has been the topic of a number of analyst reports. BTIG Research lowered their target price on shares of Tempus AI from $90.00 to $80.00 and set a “buy” rating on the stock in a report on Friday, May 8th. Guggenheim lowered their target price on shares of Tempus AI from $95.00 to $60.00 and set a “buy” rating on the stock in a report on Monday, March 30th. HC Wainwright lowered their target price on shares of Tempus AI from $95.00 to $64.00 and set a “buy” rating on the stock in a report on Monday, May 11th. JPMorgan Chase & Co. lowered their target price on shares of Tempus AI from $80.00 to $60.00 and set a “neutral” rating on the stock in a report on Wednesday, February 25th. Finally, Wall Street Zen cut shares of Tempus AI from a “hold” rating to a “sell” rating in a report on Saturday, February 28th. Nine equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Tempus AI presently has a consensus rating of “Moderate Buy” and a consensus target price of $68.64.

Tempus AI Company Profile

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.