Kustom Entertainment shares surge 71.13% premarket after rebranding from Digital Ally with 1-for-3 reverse stock split.

Kustom Entertainment surged 71.13% 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 rebranding and reverse split, which significantly reduced outstanding shares, signaled a strategic shift toward the entertainment sector and improved capital structure, likely boosting investor confidence. Additionally, the company’s announcement of a $10M buy-back program further reinforced its commitment to shareholder value, aligning with the sharp premarket rally. While the Kyle Rittenhouse-related market sentiment mentioned in news summaries may have contributed to broader market optimism, the primary catalyst for Kustom Entertainment’s movement was the structural corporate actions and rebranding.