Form 4: Tempus AI Executive Sells Over 51,000 Shares Under Pre-Arranged Trading Plan

Erik Phelps, EVP & Chief Administrative and Legal Officer of Tempus AI, Inc., sold 51,317 shares of Class A Common Stock for approximately $3.72 million through a pre-arranged 10b5-1 trading plan.

Summary

• Erik Phelps, the Executive Vice President and Chief Administrative and Legal Officer of Tempus AI, Inc. (TEM), reported the sale of 51,317 shares of the company's Class A Common Stock.
• The transactions occurred on June 16, 2025, and were executed under a Rule 10b5-1 trading plan adopted by Mr. Phelps on September 6, 2024.
• The shares were sold in multiple transactions at weighted average prices ranging from $72.01 to $74.41 per share.
• Specifically, 29,333 shares were sold at a weighted average price of $72.01 (ranging from $71.28 to $72.27).
• An additional 11,186 shares were sold at a weighted average price of $72.74 (ranging from $72.28 to $73.27).
• Another 8,898 shares were sold at a weighted average price of $73.76 (ranging from $73.28 to $74.25).
• Finally, 1,900 shares were sold at a weighted average price of $74.41 (ranging from $74.28 to $74.55).
• Following these transactions, Mr. Phelps directly beneficially owns 97,779 shares of Class A Common Stock.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While insider selling can sometimes be viewed negatively, the fact that it was conducted under a pre-arranged 10b5-1 plan mitigates concerns about opportunistic selling, making it an expected and transparent transaction.

Positives

• The sales were conducted under a Rule 10b5-1 trading plan, which indicates the transactions were pre-scheduled and not based on immediate, non-public information, enhancing transparency and mitigating concerns about opportunistic insider trading.

Negatives

• The sale of a significant number of shares (51,317) by a high-ranking executive could be perceived by some investors as a lack of confidence in the company's near-term prospects, despite being pre-planned.

Risks

• No specific risks are explicitly mentioned in this Form 4 filing beyond the general market perception associated with insider stock sales.

Future Outlook

The document does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.

Industry Context

This Form 4 filing reports an individual insider transaction and does not provide information related to broader industry trends or competitive landscape.

Stakeholder Impact

• Shareholders: May interpret the executive's sale of shares, potentially influencing their perception of the stock's value or future performance, although the 10b5-1 plan provides context for the sale.

Key Dates

Keywords

Tempus AI, TEM, Form 4, Insider Trading, Stock Sale, Executive, Erik Phelps, 10b5-1 Plan, Class A Common Stock