Why Is Tempus AI (TEM) Stock Down -8.99% Today?
Key Takeaways
- Tempus AI shares fell roughly 9% intraday, pulling back to about $76.04 from a prior close of $83.55.
- The decline largely unwound the prior session's 9% surge driven by an FDA clearance and a bullish analyst call.
- Insider selling — CEO and founder Eric Lefkofsky has sold more than 1 million shares since mid-September — weighed on sentiment.
- Bearish options positioning and broad profit-taking in high-momentum AI names added to the pressure.
- Traders are now watching whether the stock can hold above its recent breakout levels and the timing of the next earnings report.
Opening Summary
TEM, or Tempus AI, Inc., is a healthcare technology company that uses artificial intelligence and multimodal clinical data to power precision medicine, offering genomic diagnostics and data-licensing services to clinicians and pharmaceutical partners. In today's session, TEM traded down approximately 8.99% to $76.04, compared with a previous close of $83.55. The move marked a sharp reversal of the prior day's rally, as markets digested heavy insider selling and took profits following a recent run-up.
Profit-Taking After a Sharp Rally
The decline came on the heels of a powerful prior-session advance, when TEM jumped about 9% after the company received FDA 510(k) clearance for Tempus ECG-MR, an AI tool that flags possible mitral regurgitation from standard ECG readings, and after Guggenheim raised its price target on the stock. Such outsized single-day gains frequently invite profit-taking the following session, and today's reversal returned the shares to roughly the level where they traded before the clearance-driven pop. The giveback suggests that near-term traders locked in gains rather than any deterioration in the company's fundamentals.
Insider Selling Weighs on Sentiment
Investor attention also turned to ongoing insider transactions. Founder, chairman, and CEO Eric Lefkofsky has sold more than 1 million Class A shares across multiple trades since mid-September, at prices between roughly $76 and $81. While routine executive selling can be part of pre-planned diversification, the scale and timing of the disposals — coming as the stock sat near its recent highs — were cited by market participants as a negative signal that pressured TEM shares.
Bearish Options Activity and Momentum Rotation
Adding to the selling pressure were signs of cautious positioning in the options market, where traders were reported to have sold far out-of-the-money calls while buying out-of-the-money puts in late August, reflecting limited conviction in further upside. The stock, which carries a notably high beta and has been a favorite among high-momentum AI investors, was also caught up in broader rotation away from speculative growth names in the session, amplifying its move relative to the broader market.
Market Context and Trading Activity
The pullback in TEM was more pronounced than the broader tape, underscoring the stock-specific and momentum-driven nature of the decline. Trading volume was elevated as the session progressed, consistent with active repositioning following the prior day's breakout. The reversal brought the shares back toward a zone that several sell-side analysts have flagged as near fair value — a number of recently initiated or updated ratings carry price objectives at or below the stock's pre-decline levels — reinforcing the notion that valuation itself became a source of resistance after the rapid climb.
What Comes Next for TEM
Looking ahead, investors will watch whether TEM can hold key technical support and whether the pullback stabilizes or extends. The company's next quarterly earnings report is a key near-term catalyst, along with progress on reimbursement expansion for its diagnostics portfolio, the integration of its planned Personalis acquisition, and upcoming renewals of major data-licensing contracts. Risks include continued insider selling, the company's still-negative profitability, and the sensitivity of a high-multiple growth stock to shifting risk appetite in the AI sector.
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TEM sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for TEM moved above the 200-day moving average on September 16, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Momentum Indicator moved above the 0 level on October 05, 2026. You may want to consider a long position or call options on TEM as a result. In 30 of 35 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 86%.
Following a +9.22% 3-day Advance, the price is estimated to grow further. Considering data from situations where TEM advanced for three days, in 110 of 125 cases, the price rose further within the following month. The odds of a continued upward trend are 88%.
The Aroon Indicator entered an Uptrend today. In 48 of 54 cases where TEM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 89%.
Bearish Trend Analysis
The 10-day RSI Indicator for TEM moved out of overbought territory on September 29, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 14 similar instances where the indicator moved out of overbought territory. In 14 of the 14 cases, the stock moved lower in the following days. This puts the odds of a move lower at 90%.
The Moving Average Convergence Divergence Histogram (MACD) for TEM turned negative on October 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 21 similar instances when the indicator turned negative. In 21 of the 21 cases the stock turned lower in the days that followed. This puts the odds of success at 90%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TEM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 86%.
TEM broke above its upper Bollinger Band on September 17, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 14 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. TEM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 77 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: TEM's P/B Ratio (34.722) is very high in comparison to the industry average of (7.432). P/E Ratio (39.298) is within average values for comparable stocks, (46.656). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.133). Dividend Yield (0.000) settles around the average of (0.010) among similar stocks. P/S Ratio (8.696) is also within normal values, averaging (6.065).
The Tickeron SMR rating for this company is 98 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TEM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 98, placing this stock worse than average.
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