TLDR
- Tempus AI stock rose about 7% to $82.24 after a strong quarterly report.
- Revenue hit $382.49 million, up 22% year over year, beating estimates.
- The company posted a smaller than expected loss of $0.04 per share.
- CEO Eric Lefkofsky sold 250,000 shares of stock for $19.4 million under a 10b5-1 plan.
- Wall Street analysts remain split, with a consensus Hold rating and a $69.63 price target.
Tempus AI (TEM) stock climbed 7% this week, trading at $82.24 after a wave of insider selling and a strong earnings report collided. The healthcare technology company beat Wall Street expectations on both revenue and earnings for the quarter.
The stock has now rebounded 30% since the start of the year. That comes after a rough stretch that saw the price fall nearly 50% from its highs.
Revenue for the quarter came in at $382.49 million. That marks a 22% increase from the same period last year.
Tempus AI reported an adjusted loss of $0.04 per share. Analysts had expected a wider loss of $0.14 per share.
The company is still not profitable overall. It posted a net loss of $254.4 million over the trailing twelve months.
Insiders Sell Stock Under Trading Plans
CEO Eric Lefkofsky sold 250,000 shares on September 22 at an average price of $77.47. The sale totaled roughly $19.4 million and cut his direct holdings by about 71%.
Chief Accounting Officer Ryan Bartolucci also sold stock. He offloaded 7,062 shares worth $529,650 on September 17, leaving him with 60,804 shares directly held.
Other executives joined in too. CEO Ryan Fukushima sold 700 shares for $49,000, while EVP Andrew Polovin sold 2,951 shares for $221,325.
All of these trades were made under Rule 10b5-1 plans. These plans are set up in advance, so the timing isn’t tied to any inside knowledge of company news.
Over the past three months, insiders have sold a total of $73.1 million worth of Tempus AI stock. Corporate insiders still own about 24% of the company.
Wall Street’s Take on the Stock
Analyst opinion on Tempus AI is far from unified. Eleven analysts currently rate the stock a Buy, nine rate it a Hold, and two rate it a Sell.
That mix works out to a consensus Hold rating. The average price target sits at $69.63, which is below where the stock currently trades.
Several firms have adjusted their targets recently. BTIG Research raised its target from $70 to $80 and kept a Buy rating.
HC Wainwright lifted its target from $56 to $66, also maintaining a Buy. Raymond James set an $80 price target on the stock.
Not everyone is as upbeat. UBS Group started coverage with a Neutral rating and a $70 target.
Stifel Nicolaus cut its target from $60 to $50 and set a Hold rating. Wolfe Research began coverage with a Peer Perform rating.
Trading volume has been heavy throughout the move. Thursday’s session saw roughly 8.5 million to 10.7 million units change hands, well above the average volume of around 6.1 million.
The company’s market capitalization now sits between $14 billion and $15 billion depending on the trading session. Its 52 week range spans from $40.77 to $104.32.
Institutional ownership stands at 24.22%. Recent buyers include Whittier Trust Co., which increased its stake by 190% in the first quarter, and CoreCap Advisors, which boosted its position by nearly 293% in the second quarter.
Tempus AI’s platform focuses on oncology and precision medicine. It connects clinical workflows with diagnostic labs and analytics tools used by healthcare providers across the United States.
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