NEW YORK (TheStreet) -- Shares of body camera maker Digital Ally (DGLY) sold off by 5.83% to $17.60 in late morning trading Wednesday, one day after the stock surged following President Obama's announcement of a new plan that would allocate money to purchase wearable cameras for police officers across the U.S.
The president announced the $263 million federal funding package on Monday. Under the plan, $75 million would go toward the purchase of 50,000 body cameras for police officers. The funding would also be used to train police officers in the use of paramilitary equipment after the events in Ferguson, MO, according to The Verge.
Digital Ally previously received a boost in interest in its body cameras after the first wave of protests and civil unrest following the death of Michael Brown in Ferguson.
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Separately, 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."