Macroaxis Stories

Our current technical analysis of Digital Ally (NASDAQ:DGLY)

April 3, 2022  By
While some baby boomers are getting worried about industrials space, it is reasonable to break down Digital Ally against economic and market trends. As we have suggested previously, Digital Ally is beginning its slide as investors shift to be more bearish due to the increased sector volatility. A lot of the movements of the company stock price movements has been a reflection of what is happening in the market overall. Weak essential indicators of the company may also suggest signs of long term losses for Digital investors. Digital Ally is scheduled to announce its earnings today.
Published over a year ago
View all stories for Digital Ally | View All Stories

Reviewed by Raphi Shpitalnik

Digital Ally's average rating is Strong Buy from 1 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Digital Ally market sentiment investors' perception of the future value of Digital. Let us look at a few aspects of Digital technical analysis.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Digital Ally. In general, sophisticated investors focus on analyzing Digital Ally stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Digital Ally's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Digital Ally's intrinsic value. In addition to deriving basic predictive indicators for Digital Ally, many experienced traders also check how macroeconomic factors affect Digital Ally price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.

Watch out for price decline

Please consider monitoring Digital Ally on a daily basis if you are holding a position in it. Digital Ally is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Digital Ally stock to be traded above the $1 level to remain listed. If Digital Ally stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How does Digital Stands against Peers?

Analyzing Digital Ally competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Digital Ally across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out Digital Ally Competition Details

How important is Digital Ally's Liquidity

Digital Ally financial leverage refers to using borrowed capital as a funding source to finance Digital Ally ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Digital Ally financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Digital Ally's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Digital Ally's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Digital Ally's total debt and its cash.

Digital Ally Gross Profit

Digital Ally Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Digital Ally previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Digital Ally Gross Profit growth over the last 10 years. Please check Digital Ally's gross profit and other fundamental indicators for more details.

Closer look at Digital Ally Semi Deviation

Digital Ally has current Semi Deviation of 2.24. Semi-deviation provides a good measure of downside risk for a equity or a portfolio. It is similar to standard deviation, but it only looks at periods where the returns are less than the target or average level.
Semi-deviation is the square root of semi-variance. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.
Semi Deviation 
=  
SQRT(SV) 
 = 
2.24
SQRT = Square root notation
SV =   Digital Ally semi variance of returns over selected period
Let's now compare Digital Ally Semi Deviation to its closest peers:
DGLY
BKYI
BCO
CIX
DGLY2.2405630162913095
BKYI3.69
BCO1.38
CIX1.65

Will Digital Ally continue to go out of control?

Digital Ally current skewness rises over 0.34. Digital Ally currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.15. However, we advise investors to further question Digital Ally expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Digital Ally is a potential penny stock. Although Digital Ally may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Digital Ally. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Digital instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Conclusion on Digital Ally

While other entities in the security & protection services industry are either recovering or due for a correction, Digital may not be as strong as the others in terms of longer-term growth potentials. While some in two-three weeks oriented investors may not share our view, we believe it may not be a good time to pick up new shares of Digital.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Digital Ally. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com