Digital Ally Inc. (NASDAQ: DGLY) announced that its board of directors approved a stock buy-back program authorizing the company to purchase up to $2.5 million of outstanding common shares.

For some background on Digital Ally, the company develops, manufactures and markets advanced technology products for law enforcement, homeland security and commercial applications. The company’s primary focus is digital video imaging and storage.

For a point of reference, the stock had a market cap of nearly $31 million prior to the shares jumping on Tuesday. This new share repurchase authorization of $2.5 million is roughly 8% of the total market cap at Monday’s close.

Stanton E. Ross, Chief Executive Officer of Digital Ally, said:

Our current market valuation, strong cash balances and anticipated cash and capital needs lead us to believe that this stock buy-back program is an appropriate use of cash. This program reaffirms our continued confidence in the Company’s near and long-term financial and operating performance and our commitment to enhancing shareholder value. We believe the purchase of our stock at appropriate prices represents an attractive investment opportunity and a means to return capital to our stockholders.

So far in 2015 Digital Ally has been in a bear market as shares are down 60% compared to Monday’s close.

Shares of Digital Ally were up 18% at $7.30 on Tuesday afternoon. The stock has a consensus analyst price target $20.00 and a 52-week trading range of $4.60 to $33.59.

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