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
facebook X logo linkedin


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

 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!