Tempus AI (NASDAQ:TEM) Shares Gap Down - Here's Why

Tempus AI, Inc. (NASDAQ:TEM) saw its shares gap down before the trading session on Tuesday. The stock closed at $49.87 the previous day but opened lower at $47.79. The last recorded trading price for Tempus AI shares was $46.51, with approximately 2,005,129 shares exchanged.

Analysts Update Price Targets

Several equity analysts have recently provided updates on Tempus AI shares. Needham & Company LLC raised their price target from $56.00 to $70.00 and rated Tempus AI as a "buy" in a report dated February 25th. Morgan Stanley also increased its target price, from $50.00 to $60.00, giving the company an "overweight" rating on March 6th. However, Wolfe Research downgraded Tempus AI from a "strong-buy" rating to a "hold" in a report released on February 26th. William Blair maintained a "market perform" rating for the stock on February 25th, while Loop Capital lowered its price objective from $57.00 to $52.00, still rating it as a "buy." Overall, there are six analysts rating the stock as a buy and another six giving it a hold rating, leading to an average analyst rating of "Moderate Buy" with a consensus target price of $61.18.

Tempus AI Stock Performance

Tempus AI has shown mixed signals in its recent stock market performance. The company's current ratio is 2.69, with a quick ratio of 2.55 and a debt-to-equity ratio of 8.17. The 50-day moving average price stands at $55.51, while the two-hundred-day moving average price is $51.60.

Insider Transactions

In related news, on January 31st, Ryan M. Bartolucci, the Chief Accounting Officer, sold 13,770 shares at an average price of $60.00, totaling $826,200. After this sale, Bartolucci holds 57,237 shares worth about $3,434,220, reflecting a 19.39% decrease in his holdings. CEO Eric P. Lefkofsky also sold a significant amount of shares on February 27th, offloading 3,240,234 shares at an average price of $58.75, equating to a total transaction value of $190,363,747.50. Following this transaction, Lefkofsky owns 4,895,589 shares valued at around $287,615,853.75, marking a 39.83% drop in ownership. In total, company insiders have sold 5,749,469 shares within the past three months, worth $322,529,733.

Institutional Investors Change Positions

Several institutional investors and hedge funds have adjusted their investments in Tempus AI recently. First Horizon Advisors Inc. took a new position in the third quarter worth about $30,000. Operose Advisors LLC entered a new stake valued at roughly $25,000 in the fourth quarter. Farther Finance Advisors LLC also acquired shares worth approximately $34,000 in the same period. Prestige Wealth Management Group LLC significantly increased its holdings by 910.4%, now owning 1,071 shares valued at $36,000 after adding 965 shares last quarter. NewEdge Advisors LLC secured a new investment in Tempus AI worth around $49,000 during the fourth quarter. Institutional investors hold approximately 24.22% of the company’s stock.

Company Overview

Tempus AI Inc is dedicated to advancing precision medicine through artificial intelligence technology, primarily within the healthcare sector. The company offers AI-driven precision medicine solutions to healthcare professionals, enabling personalized patient care while supporting the discovery and development of effective treatments.

Conclusion

As Tempus AI’s shares have experienced a notable gap down, investors are left with questions about future trends. Analyst ratings show a mix of confidence and caution, making it essential for potential investors to consider the volatility and recent insider activity before making decisions.

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