Money

Tempus AI, Inc. Majority Shareholder Sells $33M Worth of Stock


Tempus AI, Inc. (NASDAQ:TEM), a leading player in the AI and data analytics sector, is in the spotlight following a significant insider transaction Major shareholder Bradley A. Keywell recently sold a substantial portion of his holdings, totaling approximately $33.14 million.

Details of the Sale

According to SEC filings, Keywell sold 946,080 shares of Tempus AI stock over three consecutive trading days, from January 15 to January 17, 2025. The shares were sold at an average price of $35.0251 each. On January 15 alone, he disposed of 170,720 shares at an average price of $35.45, netting around $6.05 million.

These transactions follow a broader trend of insider selling at Tempus AI. Over the past six months, the company has recorded 47 insider trades—all of which were sales. Keywell’s recent transactions bring his total sales during this period to 1,341,884 shares, valued at approximately $50.13 million.

Other Notable Insider Activity

Keywell is not the only insider reducing their stake. In December 2024, James William Rogers, the company’s CFO, sold 83,025 shares at $42.30 each, amounting to $3.51 million. Additionally, other significant sales in recent months include:

  • SKY VENTURES LLC RED: 1,950,000 shares sold.
  • THEODORE LEONSIS: 400,000 shares sold.

Market Impact and Stock Performance

Tempus AI’s stock is currently trading at $35.15 per share, significantly below its 52-week high of $79.49. Despite the insider sales and recent volatility, analysts maintain a “Moderate Buy” rating on the stock, with an average price target of $56.36.

Investor Concerns and Outlook

While insider selling can occur for various personal or strategic reasons, transactions of this magnitude often raise concerns among investors. Such sales might influence market sentiment, especially when a majority shareholder like Keywell reduces their position.

Tempus AI’s long-term prospects remain optimistic, supported by its innovative technologies and robust growth in the AI sector. However, shareholders and potential investors will likely monitor further insider activity and stock performance closely.

Conclusion

The significant insider transactions at Tempus AI underscore the importance of vigilance among investors. While the company’s fundamentals and growth potential remain strong, such high-profile sales may introduce near-term uncertainty.

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