Form 4: Tempus AI Executive Sells Shares Under 10b5-1 Plan

Tempus AI's EVP & Chief Admin & Legal Officer, Erik Phelps, sold 1,302 shares of Class A Common Stock for $67.42 per share under a pre-arranged 10b5-1 trading plan.

Summary

• Erik Phelps, EVP & Chief Admin & Legal Officer of Tempus AI, Inc. (TEM), sold 1,302 shares of Class A Common Stock.
• The transaction occurred on December 16, 2025, at a price of $67.42 per share.
• This sale was executed pursuant to a Rule 10b5-1 trading plan adopted by Mr. Phelps on September 15, 2025.
• Following this transaction, Mr. Phelps directly beneficially owns 89,280 shares of Class A Common Stock.

Sentiment

Score: 5

Explanation: The filing reports a routine insider stock sale executed under a pre-established 10b5-1 plan, which is a neutral event in itself, not indicating strong positive or negative sentiment about the company's immediate prospects.

Positives

• The transaction was executed under a Rule 10b5-1 trading plan, indicating a pre-scheduled sale rather than an immediate reaction to new information, which can be viewed positively for transparency and avoiding insider trading concerns.

Negatives

• An executive selling shares, even under a 10b5-1 plan, reduces their direct ownership stake in the company.

Future Outlook

NA

Industry Context

Insider transactions, particularly sales, are common occurrences in publicly traded companies. Sales under 10b5-1 plans are a standard mechanism for executives to diversify their holdings or manage liquidity without concerns of trading on material non-public information.

Comparison to Industry Standards

• Sales by executives under pre-arranged 10b5-1 plans are a common practice across all industries for managing personal finances and stock holdings. There are no specific comparable companies or projects mentioned in this filing to assess against.

Stakeholder Impact

• Shareholders: The sale represents a minor reduction in an executive's direct ownership, which is generally not a significant event unless part of a larger pattern of sales.
• Employees, Customers, Suppliers, Creditors: No direct impact on these stakeholders is indicated by this routine insider transaction.

Key Dates

Recommendation

This Form 4 filing details a routine, pre-scheduled insider stock sale by an executive. Such transactions, especially when conducted under a 10b5-1 plan, are generally not considered a strong indicator of future company performance and do not warrant a change in investment recommendation based solely on this information. Investors should continue to hold and monitor broader company fundamentals and market conditions.

Keywords

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