Aegis Capital Maintains Buy Rating on Digital Ally with $4.00 Target

Aegis Capital maintains a Buy rating on Digital Ally with a $4.00 price target, despite the company's shares closing at $1.75. Analyst Rommel Dionisio is ranked #3243 out of 9923 analysts on TipRanks. The Street consensus rating for Digital Ally is Hold. The company has a one-year high of $2,422.05 and a one-year low of $1.66, with an average volume of 472.5K.

Digital Ally, Inc. (DGLY), a provider of digital video imaging and storage products, revenue cycle management services for healthcare organizations, and entertainment through live events and ticketing operations, has released its Form 10-Q report for the third quarter. The report offers a detailed overview of the company's financial and operational performance, providing insights into key metrics and future prospects.

Financial Highlights

Total Revenue for the third quarter stood at $10.1 million, representing a decline from the previous year's $11.1 million. This indicates a decrease in sales performance. Gross profit decreased to $968,874 from $1,763,830 in the prior year, highlighting a reduction in profitability. The company reported an operating loss of $(5,069,753), an improvement from the previous year's $(7,553,193), suggesting progress in cost management and efficiency. The net loss for the quarter was $(222,122), a significant improvement from the previous year's $(8,953,819), reflecting better financial management and cost control. Net loss per share was $(0.54), compared to the previous year's $(6,234.36), reflecting the impact of reverse stock splits and improved financial performance [1].

Business Highlights

Digital Ally operates through three main segments: Video Solutions, Revenue Cycle Management, and Entertainment. The Video Solutions segment includes digital video imaging and storage products, while the Revenue Cycle Management segment provides back-office services to healthcare organizations. The Entertainment segment generates revenue through live events and ticketing operations. The company has expanded internationally through Digital Ally International, Inc., facilitating export sales of its products [1].

Analyst Ratings

Aegis Capital maintains a Buy rating on Digital Ally with a $4.00 price target, despite the company's shares closing at $1.75. Analyst Rommel Dionisio is ranked #3243 out of 9923 analysts on TipRanks. The Street consensus rating for Digital Ally is Hold. The company has a one-year high of $2,422.05 and a one-year low of $1.66, with an average volume of 472.5K [2].

Future Outlook

Digital Ally plans to restore positive operating cash flows and profitability by implementing cost-cutting measures, expanding non-law enforcement sales channels, and introducing new products. Management expects these initiatives to improve financial performance, although no specific timeline is provided [1].

References

[1] Digital Ally, Inc. [ DGLY ] - 10-Q - Aug. 18, 2025
[2] Aegis Capital - Digital Ally, Inc. Buy Rating with $4.00 Price Target