Tempus AI Insiders Dump $59.7M at $76+ Before Earnings
Tempus AI insiders collectively sold $59.7M over ninety days at prices well above the current $67.16 share price. The timing—twelve days before Q3 earnings on November 2—and a 424B3 prospectus filing
Tempus AI Insiders Dump $59.7M Before Nov. 2 Earnings
NEW YORK, October 27 —
Executives at Tempus AI, Inc. (TEM) collectively sold $59.70 million in open-market shares over 90 days with zero purchases across seven distinct sellers, as the company enters a fifth consecutive earnings beat setup on November 2. CEO Eric Lefkofsky's largest single transaction, $9.94 million on September 17, cleared at prices the stock has not seen since.
- $59.70M sold across seven insiders; Lefkofsky sold at $76.57, $81.09, above the current $67.16 share price.
- Q3 earnings due November 2; consensus expects EPS of -$0.09 and revenue of $411.7M, up 23.2% year-over-year.
- A 424B3 prospectus supplement was filed October 21, twelve days before the earnings release.
The Price the Insiders Chose
The selling unfolded in three clusters at different price levels. Lefkofsky began on August 25 at $64, $70 per share, then posted his heaviest single-day total on September 17, when multiple tranches totaling approximately $16 million cleared at $80.52, $81.09. His Chief Accounting Officer and Chief Legal Officer sold the same day, both at $75.00. A week later, Thomas Schoenherr, CEO of Diagnostics, sold 10,281 shares at $85.00 on September 25, the highest per-share price in the 90-day window. By October 27, TEM sat at $67.16, below every September sale price across every seller, leaving the insiders' collective exit above what the market currently offers.
Where the Bulls Have a Point
Tempus AI runs a diagnostics and data-licensing platform built around its xT and xR assays for solid tumor and hematologic cancer testing and its nP assay for pharmacogenomic testing in psychiatric conditions, with AstraZeneca, GlaxoSmithKline, and Merck among strategic collaborators. Trailing twelve-month revenue reached $1.43 billion at 64.0% gross margins, growing 21.6%. Four consecutive EPS beats, with upside surprises ranging from 19.5% to 72.5%, make the operational case hard to dismiss. What growth rate the stock prices in is the open question for a DCF calculator. The xR assay's EU Class C certification on October 26 extends market access beyond 2028, though it arrived after the bulk of the insider selling.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| TEM | $12.2B | n/a | -26.7% |
| NBIS | $38.9B | n/a | +22.2% |
| OKLO | $4.8B | n/a | -81.1% |
| CRWV | $30.4B | n/a | -59.4% |
| VST | $47.6B | 13.5x | -28.9% |
| HIMS | $6.4B | 37.4x | -42.8% |
What November 2 Will and Won't Settle
Q3 consensus calls for EPS of -$0.09 and revenue of $411.7 million, with 23.2% year-over-year growth and 18.2% EPS improvement. Analysts cut that EPS estimate 9.09% over the past 30 days, while H.C. Wainwright's price target of $68 sits barely above today's $67.16 close. Even a fifth consecutive beat would leave the stock below every price at which Tempus insiders sold in September, with Lefkofsky's $76.57 floor transaction still above the current close. The 424B3 filing of October 21, registering additional shares for potential sale twelve days before the result, adds a further variable. Run the free Tempus AI, Inc. deep-dive →
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Frequently Asked Questions
Why are Tempus insiders selling stock?
The article does not explain their reasoning. CEO Lefkofsky and six other insiders sold $59.7M collectively over 90 days, executing their largest sales in September at prices well above the current $67.16 share price. The timing, twelve days before Q3 earnings on November 2, and the simultaneous 424B3 prospectus filing raise questions but no definitive answers.
What is a 424B3 prospectus filing?
A 424B3 prospectus supplement was filed by Tempus on October 21, registering additional shares for potential sale. The filing occurred twelve days before the Q3 earnings release on November 2.
Has Tempus AI beaten earnings estimates before?
Yes. Tempus has posted four consecutive EPS beats, with upside surprises ranging from 19.5% to 72.5%. Q3 consensus calls for EPS of negative $0.09 and revenue of $411.7 million, up 23.2% year-over-year.
At what prices did Tempus insiders sell?
CEO Lefkofsky sold at prices ranging from $64 to $81.09 per share. Other insiders sold between $75 and $85, with Thomas Schoenherr, CEO of Diagnostics, selling at the highest price of $85.00 on September 25. All sale prices exceeded the current $67.16 share price.
What does Tempus AI do?
Tempus operates a diagnostics and data-licensing platform built around its xT and xR assays for solid tumor and hematologic cancer testing, and its nP assay for pharmacogenomic testing in psychiatric conditions. The company counts AstraZeneca, GlaxoSmithKline, and Merck among strategic collaborators.
Tempus AI executives have sold a combined $59.7 million in stock over 90 days — CEO Eric Lefkofsky alone executed his largest single transaction at $9.94 million on September 17 — while the company prepares to report Q3 earnings on November 2 after four consecutive beats. The insider exodus arrives days after the company's flagship cancer test won EU certification, raising an uncomfortable question: if the operational story is as strong as the beat streak suggests, why are insiders exiting at scale?