Digital Ally, Inc. (DGLY) Spikes on Earnings Win

Roughly 27% of Digital Ally, Inc.'s (DGLY) float is sold short

Mar 24, 2015 at 11:07 AM
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Digital Ally, Inc. (NASDAQ:DGLY) is soaring today, up 26% at $15.83. Also, the stock is back in the black on a year-to-date basis, and on pace for its first close north of $15 since Jan. 5. Taking another step back, shares of the surveillance products maker have nearly doubled in value on an annual basis.

Accounting for today's surge is a strong earnings report that hit the Street last night. Not only did the company swing to a fourth-quarter profit of 5 cents per share (from the prior year's loss of 50 cents), but it also reported a 55% rise in revenue. In fact, a statement from DGLY described the quarter as the "strongest three-month period in the past twelve quarters."

One potential explanation for Digital Ally, Inc's (NASDAQ:DGLY) sharp move on the charts is short-covering activity. Specifically, a lofty 27% of the stock's float is sold short -- though, at DGLY's average trading levels, it would take a little more than one session to buy back all these bearish bets.

Daily Chart of DGLY since January 2015

 

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