Digital Ally (DGLY) In A Perilous Reversal
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Digital Ally as such a stock due to the following factors:
- DGLY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.0 million.
- DGLY has traded 92,109 shares today.
- DGLY is down 5.6% today.
- DGLY was up 12% yesterday.
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More details on DGLY:
Digital Ally, Inc. produces digital video imaging and storage products for use in law enforcement, security, and commercial applications in the United States and internationally. Currently there are 2 analysts that rate Digital Ally a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Digital Ally has been 365,100 shares per day over the past 30 days. Digital Ally has a market cap of $28.0 million and is part of the technology sector and electronics industry. The stock has a beta of 3.25 and a short float of 13.3% with 0.24 days to cover. Shares are down 5.4% year-to-date as of the close of trading on Monday.
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Analysis:
rates Digital Ally as a
. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- DGLY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 58.16%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, DIGITAL ALLY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 45.54% is the gross profit margin for DIGITAL ALLY INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -52.50% is in-line with the industry average.
- Net operating cash flow has significantly increased by 73.86% to -$0.96 million when compared to the same quarter last year. In addition, DIGITAL ALLY INC has also vastly surpassed the industry average cash flow growth rate of -13.60%.
- DGLY's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.85, which clearly demonstrates the ability to cover short-term cash needs.
- You can view the full Digital Ally Ratings Report.
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