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Key Risks Facing Digital Ally Inc.

Michael Lane

Michael Lane

As an investor and member of numerous investment platforms and communities, I see how valuable investment research can be to better understand current market situation and make more accurate investing decisions.

$DGLY

Digital Ally Inc. (Nasdaq: DGLY) produces cutting-edge digital video imaging and storage products for use in law enforcement and other commercial applications across the world. Their diverse range of offerings includes an in-car recording system designed specifically with officers' needs, hands-free automatic activated body-worn cameras, weatherproof mobile systems perfect for capturing footage on motorcycles, ATVs, and boats.

finviz dynamic chart for DGLY

In the last 5 years, Digital Ally had a 5.8% historical annual earnings growth, which is not a very high growth considering it doesn’t make profits. Over the last 12 months, however, the company had revenue of $10.5M and a loss of $0.18 a share, resulting in a stock gain of 134.88%, while S&P 500 has risen 47.84%. For shareholders, 2020 was a profitable year with a considerable share gain.

However, in the last quarter, the stock price has dropped 40% with high volatility on its daily price. With the stock in a wide and declining trend, it is expected to drop at least -26% during the next 3 months, with assets pricing between $0.98 and $1.49. Even though DGLY doesn’t seem profitable in the short term, a closer look at the financial data could mean a growth trend in the future.

A few positive and negative risk factors you should consider when deciding or not for DGLY: the company has less than 1 year of cash runway, Digital Ally still didn’t make a profit, and its earnings have grown 5.8% per year over the past 5 years. Usually, shareholders of unprofitable companies expect strong revenue growth, as fast revenue growth can be easily extrapolated to forecast profits.

Disclaimer

It’s important to keep in mind that investing isn’t just about picking stocks, it’s important to understand what makes one stock better than another by analyzing a company’s goal, position, and financials. Taking this into consideration, investors may find other companies with better financial strength than Digital Ally.

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We are committed to providing honest reviews and advice about investment communities to help you decide which suits your needs the best.

 

Since 2015, we’ve reviewed 28 investment communities and published real user reviews.

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Contact

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Suite B-2
Newark
DE 19702

hello@top10wallstreet.com