Digital Ally, Inc. (NASDAQ:DGLY) shares are trading significantly higher this afternoon without any major news to cause the rise. While there are several minor events taking place which may have spurred on this move, the 24%+ gains today may have more to do with the stock’s technical signals.
While the stock is considerably undervalued according to analysts who have an average price target at $18.65, issues of police brutality and the recent mistrial in the Freddie Gray case may have opened up the eyes of investors. While Digital Ally, Inc. (NASDAQ:DGLY) shares are up big, they have yet to reach their November highs of $7.51. The stock was clearly due for a rally following the selloff late last month and the beginning part of this month. The stock is up 24.10% or $1.32 following the news, hitting $6.79 per share. About 313,668 shares traded hands or up 63.93% from the average. DGLY has declined 65.88% since May 14, 2015 and is currently downtrending. It has underperformed the S&P500 by 63.61%.
From a total of 2 analysts covering Digital Ally (NASDAQ:DGLY) stock, 0 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 0 of the ratings are positive. The highest target price is $16.0 while the lowest target price is $7. The mean of all analyst targets is $7 which is 3.09% above today’s ($6.79) stock price. Digital Ally was the topic of 6 analyst reports since August 10, 2015 according to the firm StockzIntelligence Inc. Roth Capital downgraded shares on November 13 to a “Neutral” rating. Zacks downgraded DGLY stock in a recent report from August 25 to a “Hold” rating.
The institutional sentiment decreased to 1 in Q2 2015. It’s down 3.00, from 4 in 2015Q2. The ratio worsened, as 5 funds sold all their Digital Ally, Inc. shares they owned while 3 reduced their positions. 6 funds bought stakes while 2 increased their total positions. Institutions now own 4.60 million shares which is 1447.25% more than the previous share count of 297,390 in 2015Q2.
Vanguard Group Inc holds 0.01% of its total portfolio in Digital Ally, Inc., equating to 4.48 million shares. Wfg Advisors Lp owns 6,950 shares representing 0.01% of their total US portfolio. Moreover, American International Group Inc has 0% of their total portfolio invested in the company, equating to 300 shares. The California-based Blackrock Fund Advisors has a total of 0% of their portfolio invested in the stock. Blackrock Institutional Trust Company N.A., a California-based fund reported 49,500 shares owned.
Digital Ally, Inc. produces digital video imaging and storage products for use in law enforcement, security and commercial applications. The company has a market cap of $28.93 million. The Company’s products include an in-car digital video/audio recorder contained in a rear-view mirror for use in law enforcement and commercial fleets; a weather-resistant mobile digital video recording system for use on motorcycles and boats; a miniature digital video system designed to be worn on an individual’s body; a system that provides its audio/video surveillance from multiple vantage points; a digital video/audio recorder contained in a flashlight sold to law enforcement agencies and other security organizations, and a hand-held laser speed detection device that it is offering primarily to law enforcement agencies. It currently has negative earnings.