Bradley Keywell, a major owner (more than 10% stake) of Tempus AI, Inc. Class A (TEM) shares, sold common stock worth $33.13 million in the last week. This is the first big Informative Sell transaction by Keywell this year. Keywell also holds common shares of other companies and serves as a director on the boards of Groupon (GRPN), Equity Residential (EQR), and TKO Group Holdings (TKO). Keywell seems to have leveraged on the current surge in Tempus AI share price following the company’s Q4 FY24 results.
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Tempus AI is an American health tech company that seeks to offer precision diagnostic techniques and medicines through the power of AI (artificial intelligence). Despite missing the Street’s sales expectations for the fourth quarter of Fiscal 2024, ace hedge fund manager Cathie Wood continued her buying spree of Tempus AI shares. Woods’ ARK Genomic Revolution ETF (ARKG) holds more than 4% of Tempus AI stock.
A corporate insider’s share sale usually signals caution about the company’s future potential. However, an insider might sell shares for other reasons, such as financial or personal obligations.
A Closer Look at the Insider’s Transactions
As per Form 4 filed with the SEC on January 17, Keywell sold 946,084 TEM shares between January 15 and 17. Shares were sold in multiple tranches at weighted average prices ranging between $34.8222 and $36.0439 apiece.
Following the latest share sale, Keywell still owns 15,218,365 TEM common shares worth $534.93 million.
TEM stock currently has a Very Negative Insider Confidence Signal on TipRanks, based on Informative Sell transactions worth $146.4 million undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. 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 Tempus AI a Good Stock to Buy?
Analysts remain divided on Tempus AI stock. On TipRanks, TEM stock has a Moderate Buy consensus rating based on six Buys versus three Hold ratings. Also, the average Tempus AI price target of $59 implies 67.9% upside potential from current levels. Meanwhile, TEM shares have declined 3.7%.
