NEW YORK (TheStreet) -- Shares of Digital Ally (DGLY) , which produces video imaging and audio recording products for use in law enforcement, surged 17.19% to close at $21 on heavy trading volume after U.S. Attorney General Holder commented on an investigation by the U.S. Justice Department that showed that Cleveland Police officers "engage in excessive force far too often, and [it] is neither isolated, nor sporadic," Reuters reports.
Kansas-based Digital Ally (DGLY) soared over 45% on Tuesday after President Obama announced a new plan that would set aside up to $75 million to buy body cameras for police officers across the U.S.
Additionally, the company 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, MO.
About 5.78 million shares changed hands by the market close in New York, compared to the daily average of 793,774 shares.
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."