NEW YORK (TheStreet) -- Shares of Digital Ally (DGLY) were gaining 33.1% to $17.13 on Tuesday, a day after President Obama announced a new plan that will set aside money to buy body cameras for police officers across the U.S.
The president announced the $263 million federal funding package on Monday, $75 million of which will be dedicated to buying 50,000 body cameras for police officers. The funding package will also be used to train police officers in the use of paramilitary equipment following the events in Ferguson, MO, according to The Verge.
Digital Ally previously saw an increase in interest in its body cameras in the wake of the initial protests and civil unrest that came as a response to the death of Michael Brown in Ferguson.
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TheStreet Ratings team rates DIGITAL ALLY INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate DIGITAL ALLY INC (DGLY) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally high debt management risk."