Kustom Entertainment shares surge 37.32% premarket after rebranding from Digital Ally with 1-for-3 reverse stock split.

Kustom Entertainment surged 37.32% in premarket trading following the announcement of a 1-for-3 reverse stock split and rebranding from Digital Ally. The reverse split, executed on January 8, 2026, significantly reduced outstanding shares, potentially enhancing per-share value. Additionally, the company’s $10 million stock buy-back program, approved under its new branding, signaled confidence in its strategic direction. Both actions—corporate restructuring and capital return initiatives—are typically viewed as bullish catalysts, aligning with the sharp premarket price increase. The move reflects investor optimism about the company’s repositioning under the Kustom Entertainment name and its commitment to shareholder value.