Popular investor Cathie Wood and her Ark Invest funds took advantage of a buying opportunity on Tuesday by purchasing over 400,000 shares of Tempus AI (TEM) as the stock plummeted 15%. This move shows that Wood is confident in the AI healthcare firm’s long-term potential despite its recent downturn. As a result, shares of Tempus are up almost 10% at the time of writing.
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It is worth noting that Ark Invest acquired the shares through two of its exchange-traded funds: the Ark Innovation ETF (ARKK) and the ARK Genomic Revolution ETF (ARKG). More specifically, ARKK purchased 367,388 shares, while ARKG added 78,570 shares.
Thanks to this purchase, Tempus is now a significant position in both ARKK and ARKG. In fact, Tempus is the eighth-largest holding in ARKK, with a 4.52% weighting and a market value of $275.4 million. Meanwhile, in ARKG, Tempus is the fourth-largest holding, with a 7.5% weighting and a market value of $90.8 million.
Is TEM Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TEM stock based on five Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 75% rally in its share price over the past year, the average TEM price target of $66.38 per share implies 3.8% upside potential.
