Movano CTO’s Routine January Sale: Insider Liquidity, Not a Warning for a Distressed Tech Stock

Insider Selling in a Volatile Landscape

Movano Inc. recorded a sizeable share sale by Chief Technology Officer Leabman Michael Aaron on January 12, 2026, offloading 3,377 shares at an average price of $7.01. This transaction occurs against a backdrop of steep quarterly declines—stock price down 7.73% this week and 19.91% monthly—while the firm’s market cap remains a modest $6 million and its P/E ratio sits at –0.32. The sale is part of a broader pattern of Aaron’s recent disposals, which have been driven largely by tax‑related settlements and option‑exercise costs rather than strategic divestiture. The timing, coupled with a 7‑point negative sentiment score and a 11 % communication buzz, suggests a routine liquidity event rather than a red flag for investors.

What the Numbers Mean for the Investor

From an investor’s perspective, the sale does not materially alter Aaron’s ownership stake or signal a lack of confidence in Movano’s prospects. He remains the largest insider holder, with 22,639 shares after the latest transaction—roughly 0.38% of outstanding shares given the company’s diluted float. The consistent pattern of selling around option‑exercise dates indicates a systematic approach to managing tax liabilities rather than an exodus from the company. However, the broader insider activity—such as the CEO’s recent purchase of 11,919 shares and the CFO’s mixed buying and selling—highlights a potentially optimistic internal view despite the company’s distressed valuation metrics.

Leabman Michael Aaron: A Profile of Activity

Aaron’s insider history shows a cyclical buying‑and‑selling rhythm. In July 2025 he added 139,925 shares, boosting his holdings to 216,163, and maintained a sizable stake through the subsequent months. The 2025‑11 exercise period saw a sharp increase in stock options (42,250 shares) followed by a modest sell of 21,260 shares, illustrating his use of options as a compensation tool. The 2026 January sales, each under 3,500 shares, reflect a continuation of his pattern of liquidating option proceeds to cover taxes. Across the past year, Aaron has executed 13 significant transactions, averaging 1,200 shares per trade, a level that is modest relative to the company’s total shares outstanding. This disciplined approach indicates a long‑term commitment to Movano’s technology pipeline while managing personal tax exposure.

Implications for Movano’s Future

With Movano still grappling with negative earnings and a precarious valuation, the insider activity provides limited reassurance of imminent turnaround. The consistent buying by the CEO and CFO suggests confidence, yet the overall market sentiment remains muted, as evidenced by the negative P/E ratio and low price volatility. Investors should monitor Aaron’s subsequent trades for any deviation from this pattern; a sudden large divestiture could presage concerns about the company’s trajectory. Conversely, continued insider purchases, particularly at discounted prices, could signal management’s belief in a future upside as Movano pursues its wearable health‑tech innovations.

Bottom Line for Investors

While Aaron’s recent sale is routine and does not materially weaken his stake, the broader insider landscape underscores a cautiously optimistic management view amid a distressed stock environment. Investors should weigh the company’s high volatility, negative profitability metrics, and the strategic importance of its RF‑based health monitoring platform against the insider activity that suggests a long‑term commitment to the business.