Risk Alert for Investors as Shares Gapping Down Pre-Market Open: Digital Ally, Inc. (NASDAQ:DGLY)

Digital Ally, Inc. (NASDAQ:DGLY) shares are moving lower ahead of the market open, gapping down -3.18% as the stock currently sits at $2.10 before the bell.

There are many factors that may influence stock price action. One of the most influential factors is company earnings. Company earnings reports can be extremely important for investors. Earnings reports have the ability to let investors know how well or poorly a company has been performing. Investors may try to capitalize on trading around earnings announcements. This can be a very tricky venture and may be quite risky. Studying stock price movements around earnings reports can sometimes be confusing. Often times a company will post better than expected numbers but the stock will drop in price. On the other side, shares may see a bounce even after disappointing results. Analysts try to project what numbers the company will post, but they may not be accurate for a variety of reasons. Following analyst estimates around earnings reports may be helpful, but it may be wise to proceed with caution if only going on what the analysts are saying.

A gap is a space between prices that occurs when the price of a stock makes a move down or up when there is no trading happening in between. 

Investors studying the fundamentals might be conducting in-depth company research before deciding when to purchase a particular stock. The investor checklist may include studying the scope of a company’s competitive industry advantage, examining company management, and trying to get a general feel if the stock is valued properly. Once the decision is made that the company is a good fit for the portfolio, it may be wise to assess whether or not current conditions and price levels indicate proper levels for share purchase. The timing of purchasing a researched stock obviously comes with some level of trepidation. Investors will only know in the future whether they got in at the right price. A stock that looks very attractive today may not be as attractive in the future. Sometimes the investor will just have to trust their research and instinct when purchasing shares. 

Recent Price History

Digital Ally, Inc. (NASDAQ:DGLY)’s performance this year to date is -48.36%.  The stock has performed 20.50% over the last seven days, -3.60% over the last thirty, and -35.25% over the last three months.  Over the last six months, Digital Ally, Inc.’s stock has been -44.38% and -61.27% for the year.

SMA

The simple moving average is the most common method used to calculate the moving average of prices. Digital Ally, Inc.’s 20-Day Simple Moving Average is 1.73%.  Extending back, their 50-Day Simple Moving Average is -11.72%, looking even further back, their 200-Day Simple Moving Average stands at -40.34%.  

Disclaimer: Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

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