Have Tempus AI Insiders Been Selling Stock?

We wouldn't blame Tempus AI, Inc. (NASDAQ:TEM) shareholders if they were a little worried about the fact that Eric Lefkofsky, the Co-Founder recently netted about US$6.6m selling shares at an average price of US$49.61. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.4%.

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The Last 12 Months Of Insider Transactions At Tempus AI

Notably, that recent sale by Co-Founder Eric Lefkofsky was not the only time they sold Tempus AI shares this year. Earlier in the year, they fetched US$72.20 per share in a -US$9.1m sale. That means that even when the share price was slightly below the current price of US$72.69, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 0.3% of Eric Lefkofsky's holding.

Tempus AI insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Tempus AI

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Does Tempus AI Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Tempus AI insiders own 35% of the company, worth about US$4.6b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Tempus AI Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Tempus AI you should know about.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.