Tempus AI (NASDAQ:TEM) Trading Down 7.4% After Analyst Downgrade

Tempus AI, Inc. (NASDAQ:TEM)’s stock price traded down 7.4% during trading on Wednesday after Needham & Company LLC lowered their price target on the stock from $100.00 to $75.00. Needham & Company LLC currently has a buy rating on the stock. Tempus AI traded as low as $53.80 and last traded at $53.6710. 4,198,853 shares changed hands during mid-day trading, a decline of 26% from the average session volume of 5,636,385 shares. The stock had previously closed at $57.95.

Several other analysts have also weighed in on TEM. Morgan Stanley increased their price target on Tempus AI from $80.00 to $85.00 and gave the company an “overweight” rating in a report on Monday, December 1st. BTIG Research cut their target price on Tempus AI from $105.00 to $90.00 and set a “buy” rating on the stock in a research note on Wednesday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Tempus AI in a research report on Thursday, January 22nd. HC Wainwright decreased their target price on Tempus AI from $98.00 to $89.00 and set a “buy” rating for the company in a research report on Friday, November 7th. Finally, Canaccord Genuity Group cut their price target on shares of Tempus AI from $95.00 to $80.00 and set a “buy” rating on the stock in a report on Monday, December 22nd. Eight analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $82.58.

Insider Buying and Selling at Tempus AI

In other Tempus AI news, EVP Erik Phelps sold 9,464 shares of Tempus AI stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $59.43, for a total value of $562,445.52. Following the transaction, the executive vice president owned 79,816 shares in the company, valued at $4,743,464.88. The trade was a 10.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Ryan M. Bartolucci sold 2,902 shares of the stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $59.05, for a total transaction of $171,363.10. Following the sale, the chief accounting officer directly owned 41,159 shares of the company’s stock, valued at approximately $2,430,438.95. The trade was a 6.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 596,035 shares of company stock worth $37,505,125. 26.27% of the stock is currently owned by company insiders.

Tempus AI News Roundup

Here are the key news stories impacting Tempus AI this week:

• Positive Sentiment: Very strong revenue growth — Q4 revenue jumped ~83% YoY, beating consensus and showing broad strength across Diagnostics, MRD and Data businesses; RCV and retention metrics also look healthy. MarketBeat Q4 recap
• Positive Sentiment: FY‑2026 revenue guide is sizable — management outlined roughly $1.59B in 2026 revenue (≈25% growth guidance), which implies continued top‑line momentum and gives a clear growth runway to model. Seeking Alpha: 2026 revenue target
• Positive Sentiment: Margins improving — management reported narrower losses, higher gross profit and an adjusted EBITDA inflection to positive on a YoY basis, supporting the path to eventual sustained profitability. MarketBeat analysis
• Neutral Sentiment: Product/partnership expansion continues — launches like the HRD‑RNA algorithm and a lung‑screening partnership expand addressable market and could support longer‑term revenue, but near‑term financial impact is incremental. Yahoo Finance: product & partnership update
• Neutral Sentiment: Analysts largely remain constructive — several firms kept Buy/Overweight ratings (Morgan Stanley kept a $85 PT; Canaccord and others reiterated positives), showing institutional support despite the pullback. TipRanks: analyst notes
• Negative Sentiment: Profitability details disappointed some investors — headlines and market reaction focused on a wider‑than‑expected loss / operating shortfall in Q4 and ambiguity on the timing of full‑year profitability inflection, which undercut sentiment. Zacks: earnings miss / reaction
• Negative Sentiment: Price‑target cut and valuation concerns — BTIG trimmed its target from $105 to $90 (still constructive), highlighting mixed near‑term expectations; high leverage and elevated short interest add downside risk in volatile trading. Benzinga: BTIG target cut
• Negative Sentiment: Market reaction: despite beat‑and‑raise elements, investors sold on the mixed profit signal and cautious tone — that combination explains today’s pullback. 247WallSt: mixed reaction

Hedge Funds Weigh In On Tempus AI

Hedge funds and other institutional investors have recently modified their holdings of the stock. Cranbrook Wealth Management LLC acquired a new position in Tempus AI during the 3rd quarter valued at approximately $25,000. JPL Wealth Management LLC acquired a new position in shares of Tempus AI in the 3rd quarter valued at $26,000. Los Angeles Capital Management LLC purchased a new position in Tempus AI in the 4th quarter worth $27,000. GAMMA Investing LLC acquired a new stake in Tempus AI during the 3rd quarter worth about $28,000. Finally, Allworth Financial LP grew its stake in Tempus AI by 5,000.0% during the 2nd quarter. Allworth Financial LP now owns 459 shares of the company’s stock valued at $29,000 after purchasing an additional 450 shares during the last quarter. 24.22% of the stock is owned by hedge funds and other institutional investors.

Tempus AI Trading Down 7.5%

The company has a 50 day simple moving average of $61.92 and a two-hundred day simple moving average of $73.59. The company has a debt-to-equity ratio of 2.45, a quick ratio of 3.12 and a current ratio of 3.28. The firm has a market cap of $9.54 billion, a PE ratio of -44.99 and a beta of 5.22.

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.