Tempus AI’s(TEM) CEO Eric Lefkofsky, recently sold shares worth over $190.36 million. The sales were made indirectly through various entities associated with Lefkofsky, including Innovation Group Investors, L.P. and Lightbank Investments 1B, LLC. This move has raised concerns among investors, as TEM stock has declined more than 3% in pre-market trading.
TEM is a technology company that uses AI and data analytics to improve precision medicine and healthcare outcomes.
Details of the Insider Sale
According to a recent SEC filing, Lefkofsky sold 3,240,234 shares, which is a substantial portion of his holdings in Tempus AI. The transactions took place on February 27 at a weighted average price of $58.75.
It is worth noting that even after these Informative Sell transactions, Lefkofsky directly owns about 2.87 million Tempus AI shares worth $2.57 billion. In addition, he indirectly owns 36.4 million shares through various entities.
Reasons Behind CEO’s Large Sale
It’s reasonable to assume that Lefkofsky is taking advantage of TEM stock’s stellar performance driven by the company’s efforts to increase the use of AI to enhance physicians’ abilities to diagnose patients. Year-to-date, shares of the company have surged by 69%.
Importantly, large sell transactions by insiders can take place for several reasons and do not indicate a lack of confidence in the company’s future. Investors should note that these sales may be driven by personal financial planning, asset diversification, or other factors unrelated to the company itself.
Insiders Sentiment for TEM Stock Is Currently Bearish
In addition to the CEO, some more corporate insiders at Tempus AI have decreased their stake in the company. Overall, TipRanks’ Insider Trading Activity Tool shows that insider confidence in TEM stock is currently Very Negative. Corporate insiders have sold shares worth $336.8 million over the last three months.
Investors could keep close track of these notable insider activities, as they reflect the perceptions of key insiders about the company’s prospects. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is TEM a Good Stock to Buy?
Turning to Wall Street, TEM stock has a Moderate Buy consensus rating based on five Buys and five Holds assigned in the last three months. At $66.22, the average Tempus AI stock price target implies 19.75% upside potential.
