Digital Ally (DGLY) Soars 8433.33% on Reverse Stock Split

Digital Ally (DGLY) experienced a significant intraday gain of 8433.33%, reaching its highest level since July 2024, despite a 1.96% decline over the past seven days. The stock has seen a remarkable 5852.38% increase over the past week.

The strategy of buying DGLY shares after they reached a recent high and holding for 1 week resulted in significant losses. The 5-year backtested return was -99.97%, with a maximum drawdown of 100%. This indicates that this strategy would not have been profitable over the past 5 years, and the risk of losing all invested capital was high.

Digital Ally's recent stock price movements have been primarily influenced by the company's announcement and execution of a reverse stock split. On May 23, 2025, the company announced a 1-for-100 reverse stock split, which was executed on May 22, 2025. This corporate action will result in the stock trading on a split-adjusted basis starting May 23, 2025. Reverse stock splits often impact stock prices by altering the number of shares available and their market value per share, which can affect investor perception and trading activity.