A Tempus AI director sold 3,000 shares under a pre-set 10b5-1 plan days before a 24% rally. She still owns 34,981 shares and sits on the board overseeing a $1.5 billion acquisition.
Nadja West, a director at Tempus AI (NASDAQ:TEM), sold 3,000 shares of Class A common stock on August 14 at a weighted average price of $53.90, according to a Form 4 filed with the SEC. Four trading days later, the stock surged roughly 24% after Moderna and Merck announced that their cancer vaccine hit its goals in a late-stage trial.
The transaction ran through a Rule 10b5-1 trading plan West established on May 15, months before the trial result. Those plans allow insiders to schedule stock sales at predetermined times and prices, insulating them from accusations of trading on material non-public information. The August 14 sale was scheduled before any of the parties involved – Tempus, Moderna, or Merck – knew the trial outcome.
West still holds 34,981 shares directly after the sale, a position worth roughly $1.8 million at Friday's closing price of $52.10. The 3,000 shares she sold represented less than 8% of her direct stake.
The rally tied to a specific catalyst: Moderna and Merck's combination therapy, which uses Tempus AI's competitor Personalis for its genomic sequencing technology. Tempus AI has a pending $1.5 billion acquisition of Personalis, a deal West as a director will eventually vote on. That acquisition is the bigger lever on shareholder value than any pre-scheduled stock sale.
Tempus AI reported second-quarter results on August 7 that showed revenue up 22% year over year to $382.5 million and the company's first GAAP profit. The Chicago-based healthcare technology platform generated $1.4 billion in trailing twelve-month revenue, though it recorded a net loss of $254.4 million over the same period. The company employs about 3,800 people and carries a market capitalization of roughly $9 billion.
For investors parsing insider transactions, the key details are the plan date, the size of the sale relative to the remaining stake, and whether the director has a meaningful vote on upcoming corporate events. West had all three working in the routine column.
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