Cathie Wood’s ARK line of ETFs added more 29,845 Tempus AI (TEM) stock after the company announced the acquisition of Deep 6 AI yesterday. Wood’s ARK Innovation ETF (ARKK) bought the stock worth $1.36 million on March 12 as part of the daily trades. At the same time, Wood sold 41,839 shares of space exploration company, Rocket Lab USA (RKLB) from two of its ETFs, namely ARK Space Exploration & Innovation ETF (ARKQ) and ARK Autonomous Technology & Robotics ETF (ARKQ).
Deep 6 AI operates a precision research platform for healthcare and life sciences companies. Thus, the acquisition strengthens Tempus AI’s offerings by using Deep 6’s real-time medical data to easily match patients with clinical trials.
Wood Is Buying the Dip in Tempus AI
Ark’s recent purchasing activity displays the ace hedge fund manager’s solid conviction in the AI (artificial intelligence) powered precision medicine company. Wood has been on a buying spree of Tempus AI stock, leveraging the recent dip in the stock price. On March 11, Wood purchased 94,251 shares of Tempus AI, worth $4.29 million. In the past five trading sessions, TEM stock has lost 7.1%. After yesterday’s purchase, Tempus AI ranks eight on the ARKK fund’s top ten holdings list, representing 4.37% of the total portfolio.
Hedge Funds Are Showing Confidence in TEM Stock
Interestingly, hedge funds are showing a growing confidence in the future potential of the AI-powered biotechnology company. According to TipRanks Hedge Fund Trading Activity Tool, Tempus AI stock has a Very Positive Hedge Fund Confidence Signal as several hedge funds increased their holdings of TEM stock by 3.2 million shares in the last quarter.
Notably, Ark Invest ETFs were one of the largest accumulators of Tempus AI stock during the last quarter, with a reported value of $186.34 million.
Is Tempus AI Stock a Good Buy?
Analysts remain divided on Tempus AI’s stock trajectory. On TipRanks, TEM stock has a Moderate Buy consensus rating based on five Buys versus five Hold ratings. Also, the average Tempus AI price target of $63.67 implies 39.9% upside potential from current levels. Year-to-date, TEM stock has gained 34.8%.
Questions or Comments about the article? Write to editor@tipranks.com