Kustom Entertainment shares surge 60.56% premarket following rebranding and 1-for-3 reverse stock split.

Kustom Entertainment surged 60.56% 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 and positioned the company under a new entertainment-focused identity, signaling a strategic pivot to attract investors aligned with the entertainment sector. The rebranding, combined with the reverse split’s potential to stabilize the stock price and improve liquidity, likely drove the sharp premarket gains. While a separate $10M buy-back program and prior earnings beat were cited in limited news coverage, the rebranding and capital structure adjustment appear to be the primary catalysts for the stock’s dramatic upward movement.