CHICAGO—Erik Phelps, Executive Vice President and Chief Administrative and Legal Officer at Tempus AI, Inc. (NASDAQ:TEM), recently sold 2,396 shares of the company's Class A Common Stock. The transaction, which took place on December 16, was valued at approximately $96,391, with a weighted average sale price of $40.23 per share. Since then, TEM shares have declined significantly, currently trading at $34.30, reflecting broader market pressure that has seen the stock drop over 7% in the past week.
According to the filing, the sale was not discretionary. It was conducted to cover statutory tax withholding obligations related to the vesting of restricted stock units, a process mandated by Tempus AI's equity incentive plans. Following this transaction, Phelps retains ownership of 220,596 shares in the company, representing a stake in the $6.13 billion market cap company. InvestingPro data shows the company maintains healthy liquidity with a current ratio of 2.69, while achieving strong revenue growth of 32% in the last twelve months.
The shares were sold in multiple transactions, with prices ranging from $40.00 to $40.56. Phelps has committed to providing detailed information on the individual transaction prices upon request. For deeper insights into TEM's insider trading patterns and comprehensive financial analysis, investors can access additional InvestingPro metrics and expert tips.
In other recent news, Tempus AI has been in the spotlight with significant developments. Following the company's recent earnings report, Piper Sandler increased the stock's price target from $40 to $70, maintaining a Neutral rating. Stifel downgraded Tempus AI's stock from Buy to Hold, yet raised the price target to $65, while Needham increased its price target to $56 and maintained a Buy rating. These adjustments followed Tempus AI's acquisition of Ambry Genetics, a strategic move that potentially introduces immediate genomics capabilities.
Tempus AI also formed a strategic partnership with Avacta Therapeutics to use AI in advancing oncology drug development, providing Avacta access to Tempus's comprehensive multimodal datasets. In addition, Tempus AI's Tempus ECG-AF device, which uses artificial intelligence to identify patients at higher risk of atrial fibrillation/flutter, recently received FDA clearance.
These are the latest developments for Tempus AI. The company's CEO, Eric Lefkofsky, has deferred the settlement of approximately 4.47 million restricted stock units to a period between January 15, 2025, and March 15, 2025. Tempus AI has also invested $36 million in Personalis (NASDAQ:PSNL), Inc., acquiring shares and exercising warrants for additional stock. These recent activities and strategic moves position Tempus AI for potential future growth, according to analyst firm Needham.
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