PLEASANTON, Calif. - Movano Health (NASDAQ:MOVE), a healthcare solutions company, has initiated an investigation into what it believes to be manipulation of its common share trading. This follows the shareholder-approved reverse stock split that took place earlier this year. The company's leadership has expressed a commitment to transparency and safeguarding shareholder interests in light of these concerns.
President and CEO John Mastrototaro stated that the company is actively engaging with securities regulators, legal advisors, and other relevant partners to address the issue comprehensively. Movano Health's move comes amid similar manipulation challenges faced by other small cap companies after their reverse stock splits.
Movano Health, known for developing the Evie Ring, a wearable health device, aims to bring medical-grade data into consumer wearables. The company focuses on delivering trusted health data to individuals and enterprises, translating it into actionable insights.
The background of the reverse stock split is detailed in Movano's definitive proxy statement from the annual stockholders' meeting held on July 9, 2024. The statement, filed with the U.S. Securities and Exchange Commission on May 28, 2024, is publicly available for further information.
The company's forward-looking statements indicate plans for the Evie Ring and other products, anticipating FDA clearances and outlining strategies for future growth. However, Movano Health acknowledges that these statements are subject to risks and uncertainties that could affect actual results.
This investigation into stock trading practices is based on a press release statement from Movano Health. The company's commitment to addressing the manipulation allegations underscores its focus on maintaining the integrity of its financial practices for the benefit of its investors.
In other recent news, Movano Health announced a 1-for-15 reverse stock split to maintain its Nasdaq listing, reducing the number of outstanding shares from about 99.5 million to approximately 6.6 million. In parallel, the healthcare firm is making considerable progress with the FDA's review process for its EvieMED Ring, a device designed for remote patient monitoring and clinical trials. The company is now in the final phase of the FDA's 510(k) clearance process, particularly for the device's pulse oximetry feature. Despite reporting an operating loss of $6.4 million in the second quarter, Movano Health shipped 1,837 Evie Rings and established collaborations with two global pharmaceutical companies and a large payer, indicating potential commercial opportunities. Furthermore, the company has completed a blood pressure clinical study and is redesigning the device for improved sensor placement. These recent developments reflect Movano Health's ongoing commitment to its operations and market expansion.
InvestingPro Insights
Movano Health's recent investigation into potential stock manipulation comes amid challenging market conditions for the company. According to InvestingPro data, MOVE's stock has experienced significant declines across various timeframes. The 1-week price total return stands at -24.77%, while the 1-year price total return shows a substantial drop of -78.38%. These figures align with the company's concerns about unusual trading activity following its reverse stock split.
InvestingPro Tips highlight that MOVE is currently trading near its 52-week low and has taken a big hit over the last week, month, and six months. This persistent downward trend may have contributed to the company's decision to investigate potential market manipulation.
The company's financial health also presents challenges. With a market capitalization of just $22.16 million and a negative P/E ratio of -0.83, Movano Health is struggling with profitability. An InvestingPro Tip notes that analysts do not anticipate the company will be profitable this year, which could be influencing investor sentiment and trading patterns.
Despite these challenges, Movano Health does have some positive aspects. An InvestingPro Tip indicates that the company holds more cash than debt on its balance sheet, potentially providing some financial flexibility as it navigates these turbulent times.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Movano Health, providing a deeper understanding of the company's financial position and market performance.
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