Tempus AI (NASDAQ:TEM) Shares Gap Up - Should You Buy?

On Wednesday, the shares of Tempus AI, Inc. (NASDAQ:TEM) experienced a notable increase in price before the market opened. The stock had previously closed at $45.58 but opened at $48.75. By the end of the trading session, Tempus AI shares were last seen at $45.68, with trading volume reaching 3,267,094 shares.

Analyst Ratings Changes

Tempus AI Is a Buy, If You Can Handle the Volatility

Several analysts have provided insights regarding Tempus AI's shares. Needham & Company LLC raised their price target from $56.00 to $70.00, maintaining a "buy" rating in their research note on February 25th. Guggenheim also reiterated a "buy" rating on the same date. Additionally, TD Cowen revisited their price target from $58.00 to $74.00 in a report on February 5th, reaffirming their "buy" stance. However, William Blair kept a more cautious approach, assigning a "market perform" rating on February 25th. In contrast, Piper Sandler reduced their price objective from $70.00 to $55.00 and rated the stock as "neutral" in their report on March 4th. Currently, the consensus from six analysts indicates a "Moderate Buy" rating, with an average target price of $61.18.

Tempus AI Trading Up 2.7%

Conflicting Signals: Tempus AI's Stock Market Rally

Tempus AI's stock price has recently shown slight upward movement, with a 50-day moving average of $54.76 and a 200-day moving average of $52.03. The financial health of the company is indicated by its current ratio of 2.69, quick ratio of 2.55, and a significantly high debt-to-equity ratio of 8.17.

Insider Buying and Selling at Tempus AI

Recent insider transactions provide insight into the company's internal movements. EVP Andrew Polovin sold 1,130 shares on December 16th at an average price of $40.23 for a total of $45,459.90. Post-transaction, Polovin retains ownership of 244,955 shares valued at approximately $9.85 million, reflecting a decrease of 0.46% in his holdings. Furthermore, major shareholder Bradley A. Keywell sold 265,000 shares on January 17th, with the stock sold at an average price of $35.10 for a total value of $9.30 million. After this sale, Keywell holds around 15,218,365 shares worth about $534.16 million, indicating a 1.71% reduction in his position. Overall, insiders have sold approximately 5,755,906 shares valued at around $322.79 million over the past three months.

Institutional Inflows and Outflows

Health-Tech Revival: 3 Stocks Set for a Big 2025 Rebound

Recent changes among institutional investors also highlight the shifting landscape for Tempus AI. Sigma Planning Corp acquired a new stake valued at $1.32 million during the third quarter. Similarly, GSA Capital Partners LLP purchased approximately $306,000 worth of shares. Notably, Sumitomo Mitsui Trust Group Inc. increased its stake by an impressive 1,591.2%, now holding 1,217,699 shares worth approximately $68.92 million after acquiring an additional 1,145,698 shares. First Horizon Advisors Inc. made a new investment worth $30,000 in the same period. The Manufacturers Life Insurance Company also grew its holdings by 10.2%, reaching 29,789 shares valued at roughly $1.69 million. Overall, institutional investors control about 24.22% of the company’s stock.

About Tempus AI

Tempus AI Inc is a technology-focused company that enhances precision medicine by applying artificial intelligence primarily in healthcare settings. Their solutions aim to provide AI-driven precision medicine tools to assist physicians in delivering tailored patient care while supporting the efficiency in the discovery, development, and delivery of effective therapeutics.

Should You Invest $1,000 in Tempus AI Right Now?

Before making any investment in Tempus AI, it's prudent to closely observe market analyses. Current reports indicate that while Tempus AI has a Moderate Buy rating from analysts, there are five other stocks that top analysts recommend as more favorable investments at this time.

This evaluation draws from rapid insights and financial metrics to present a well-rounded view of Tempus AI's stock performance and prospects.

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