Kustom Entertainment shares surge 93.66% premarket after rebranding and 1-for-3 reverse stock split.

Kustom Entertainment surged 93.66% in premarket trading following the announcement of a 1-for-3 reverse stock split and rebranding from Digital Ally, effective January 8, 2026. The rebranding, coupled with a $10 million share buy-back program approved by the company, signaled a strategic shift toward the entertainment sector and confidence in its capital structure. The reverse split reduces outstanding shares, potentially enhancing per-share value, while the buy-back program reflects management's commitment to shareholder returns. These moves align with recent positive developments, including an EPS beat of $0.20 and heightened investor sentiment amid broader market conditions. The sharp premarket rally reflects optimism over the company’s repositioning and financial discipline.