Tempus AI, Inc. (TEM) Down 4.6% — Time to Trim the Holdings?
Tempus AI, Inc. (TEM) spent the latest session under clear pressure, sliding 4.61% and losing $3.15 to close at $65.21. The stock retreated on relatively light activity, with roughly 2.68 million shares changing hands versus a 90-day average closer to 6.08 million, suggesting a pullback occurring without strong buying support. From a longer-term perspective, shares remain sharply below their 52-week peak of $104.32 set on Oct. 9, 2025, leaving the stock more than $39 off that high and highlighting how much ground has been lost in recent months.
The current quote also leaves TEM hovering in the upper half of its 52-week range between $36.22 and $104.32, but the recent slide reinforces a pattern of the stock retreating from prior strength rather than building on it. Sector peers such as BeOne Medicines AG (ONC), Insmed Incorporated (INSM), and Natera (NTRA) have likewise seen choppy trading in recent sessions, yet TEM’s latest drop stands out as the shares continue to give back gains and face persistent headwinds. With the stock losing ground and trading well under its recent high-water mark, the price action points to a name still struggling to regain sustained upward momentum.
Why Tempus AI, Inc. Price is Moving Lower
Tempus AI’s latest pullback is being driven largely by mounting concerns around risk, sustainability of returns and insider behavior, despite strong headline growth. The 4.2% drop to $63.98 on Jan. 21 came on sharply reduced trading volume, suggesting waning conviction among recent buyers in a stock already exhibiting a very high beta of 5.22. That volatility is being increasingly viewed as a liability amid a backdrop of continued losses, with EPS at -$1.26 and profit margins at -18.44%, reinforcing the perception that the business model remains in a cash-burning, rather than cash-generating, phase. Even with revenue up 84.7% year over year and sequential growth of 6.2% last quarter, the market is signaling that rapid top-line expansion alone is not enough to offset persistent unprofitability.
Pressure is also coming from mixed analyst sentiment and insider selling that together raise questions about near-term upside. While some firms, such as Guggenheim, maintain aggressive targets like $95, others have moved to the sidelines, with Cowen cutting its rating to “Hold” and the overall analyst consensus clustering at “Hold” despite an $87.20 average price target. That disconnect between bullish targets and more cautious ratings is being interpreted as hesitation around execution risk and valuation. At the same time, CEO Eric Lefkofsky’s sale of 166,250 shares and broader net insider selling are fueling worries that management views the current price as rich following a strong run. In a sector where peers such as BeOne Medicines, Insmed, and Natera also face sentiment and volatility headwinds, these factors are combining to keep steady pressure on Tempus AI’s share price and to justify increased caution.
What is the Tempus AI, Inc. Rating - Should I Sell?
Weiss Ratings assigns TEM a D rating. Current recommendation is Sell. The stock was downgraded on 9/10/2024, and the rating continues to signal an unfavorable risk/reward profile for investors. In practical terms, a D rating means Tempus AI, Inc. has underperformed relative to other stocks with comparable risk and does not currently meet the standards Weiss requires even for a Hold.
The most concerning weakness comes from the Very Weak Efficiency Index, which points to poor effectiveness in turning capital into sustainable profits. That shows up clearly in the fundamentals: Despite rapid top-line expansion, the company is still losing money, with a profit margin of -18.44%. The negative forward P/E of -54.20 reinforces that the market is paying a high price today for earnings that remain negative and uncertain. In this context, the Good Growth Index — supported by strong revenue growth of 84.72% — has not translated into shareholder-friendly results.
Risk indicators also lean against the stock. The Weak Volatility Index signals an unfavorable pattern of price swings relative to potential return, while only a Fair Total Return Index suggests that, even with those risks, investors have not been adequately compensated over time. The one clear strength is the Excellent Solvency Index, indicating a solid balance sheet. However, solvency alone does not offset persistent operating losses and efficiency problems at this stage.
Within health care peers, TEM’s D rating is in line with other speculative names such as BeOne Medicines AG (ONC, D-), Insmed Incorporated (INSM, D-), and Natera, Inc. (NTRA, D-). This cluster of low-rated peers highlights how challenging this corner of the market has been for investors seeking favorable, risk-adjusted returns.
About Tempus AI, Inc.
Tempus AI, Inc. is a healthcare technology company that attempts to blend advanced diagnostics with data and artificial intelligence, but operates in a highly specialized and crowded corner of the life sciences ecosystem. Headquartered in Chicago and founded in 2015, the company focuses on next generation sequencing diagnostics, polymerase chain reaction profiling, molecular genotyping, and other anatomic and molecular pathology testing. These offerings target healthcare providers, pharmaceutical and biotechnology companies, researchers, and other institutional clients, putting Tempus in direct competition with established diagnostics and bioinformatics platforms that already serve these groups.
The company’s core products are data and software driven. Its Insights offering is a licensed library of de-identified clinical, molecular, and imaging data paired with analytical services and cloud-based compute tools for pharmaceutical and biotechnology clients. Trials is positioned as a clinical trial matching service, attempting to connect patients with oncology and other studies, but this function is also pursued by larger clinical research organizations and hospital networks. Tempus also operates Next; Algos, a suite of algorithmic oncology tests; Hub, a desktop and mobile portal for ordering, managing, and receiving tests and patient results; and Lens, a platform aimed at researchers and scientists seeking to access and analyze Tempus data. Despite strategic collaboration agreements with AstraZeneca, Pathos AI, Personalis, and Whitehawk Therapeutics, Tempus AI faces intense competitive and technological pressure in diagnostics, clinical decision support, and life sciences data platforms, where differentiation can be difficult to sustain.
Investor Outlook
With Tempus AI, Inc. (TEM) carrying a D (Sell) Weiss Rating, investors may want to exercise caution and closely monitor whether recent trading stabilizes or breaks below recent support levels. Watch for shifts in Health Care sector sentiment, along with any changes in the company’s risk profile or operating performance that could impact its overall risk/reward balance. See full rankings of all D-rated Health Care stocks inside the Weiss Stock Screener.
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