Kustom Entertainment shares surge 58.45% premarket after reverse split and rebranding from Digital Ally.

Kustom Entertainment surged 58.45% in premarket trading following its rebranding from Digital Ally and the execution of a 1-for-3 reverse stock split on January 8, 2026. The move significantly reduced outstanding shares, signaling a strategic shift toward its entertainment-focused identity. Additionally, the company approved a $10 million share buyback program, further reinforcing investor confidence in its repositioning. These actions align with the stock’s sharp upward movement, as the restructuring and capital return initiatives likely attracted speculative buying amid renewed interest in the rebranded entity.