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$9.1m worth of stock at a price of US$69.48 per share. However, that sale only accounted for 0.3% 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. Earlier in the year, they fetched US$58.75 per share in a -US$82m sale. That means that an insider was selling shares at slightly below the current price (US$70.29). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 4.3% of Eric Lefkofsky's holding.

Tempus AI insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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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Does Tempus AI Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Tempus AI insiders own 36% of the company, worth about US$4.6b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Tempus AI Tell Us?

Insiders sold Tempus AI shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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.

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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.