Some Tempus AI, Inc. (NASDAQ:TEM) shareholders may be a little concerned to see that the Co-Founder, Eric Lefkofsky, recently sold a substantial US$984k worth of stock at a price of US$44.07 per share. However, that sale only accounted for 0.06% of their holding, so arguably it doesn't say much about their conviction.

Tempus AI Insider Transactions Over The Last Year

In fact, the recent sale by Co-Founder Eric Lefkofsky was not their only sale of Tempus AI shares this year. They previously made an even bigger sale of -US$9.1m worth of shares at a price of US$72.20 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$47.17. So it may not shed much light on insider confidence at current levels.

Insiders in Tempus AI didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Tempus AI insiders own 36% of the company, currently worth about US$3.0b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Tempus AI Tell Us?

Insiders haven't bought Tempus AI stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Tempus AI has 2 warning signs and it would be unwise to ignore them.

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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.

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.