US STOCKS-Digital Ally soars after receiving order from U.S. military
* Indexes up: Dow 0.5 pct, S&P 0.4 pct, Nasdaq 0.4 pct
By Ryan Vlastelica
NEW YORK, Sept 26 (Reuters) - Shares of Digital Ally surged on Friday, with the stock soaring on heavy volume after it received an order from the U.S. military police.
The stock jumped 21 percent to $18.23, and its volume of 2.5 million shares easily eclipsed its 10-day average of less than 900,000 shares. The stock was one of the biggest percentage gainers on the Nasdaq, and one of the index's most active names.
The wearable-camera company said the military order was valued at about $200,000.
"Although not a huge order in itself, the military police in general represents a largely untapped channel through which Digital Ally can distribute its line of products," the company said in a statement.
With the day's advance, Digital Ally has nearly doubled for the year, though this represents a major pullback from earlier 2014 highs. At one point, the stock was up 265 percent for the year, receiving heavy interest in the aftermath of the fatal shooting of an unarmed black teenager in Ferguson, Missouri earlier this year. People view wearable cameras as a means of increasing law-enforcement accountability.
Still, the 10-day average volume of less than 1 million shares was well below its 25-day average of 5.9 million.
As the stock has climbed this year, short interest has surged alongside it. On Sept. 23, about 21 percent of the outstanding shares were being used for short bets, according to data from Markit, up from 5 percent in late July. Continuación...