Digital Ally, Inc. (NASDAQ:DGLY) saw its stock dip in price Monday after its Board approved a stock buyback program authorizing the company to purchase up to $10 million of its outstanding common stock.
Reports out Monday morning say the buyback program will commence immediately. The approved buyback represents about 18% of the company's total current market capitalization.
The duration of the stock buyback program is through December 31, 2022.
Digital Ally plans to fund the purchases by cash on hand. It held cash and cash equivalents of $41.2 million as of September 30, 2021.
Digital Ally reaffirmed its previously announced revenue guidance for 4Q21 of $9 million and FY22 of $50 million.
The company expects FY21 revenue to be about $18 million.
The Kansas-based company also reaffirmed its previously announced revenue guidance for the fourth quarter 2021 of $9 million and for fiscal year 2022 of $50 million.
The Company continues to benefit from the integration and expansion of its recent TicketSmarter and Nobility Healthcare acquisitions in addition to organic growth in its traditional law enforcement and commercial video solutions segment.
DGLY shares are trading lower by 98 cents, or 3% at 98 cents first thing Monday.
