Taser (TASR) Surges on Anticipated NYPD Pilot Program Win
Taser International (NASDAQ: TASR) is sharply higher today, continuing its recent momentum. While many are quick to point out the company's press release this morning about new TASER upgrade orders from the Cleveland Police department and others, what may be really driving the action is anticipation it will secure the NYPD on-officer camera pilot program order - which will be announced later this week.
According to a Reuters story, NYPD spokesman Stephen Davis said they liked the Taser system:
Davis said the NYPD, the country's largest police force, particularly liked the cameras it had seen from Taser International Inc, the Arizona-based company known for making stun guns. Taser said it has sold its wearable stand-alone cameras to more than 1,200 law enforcement agencies since the line was launched in 2009.
Not only is the NYPD the largest police force in the country, but the city's pilot program will be closely watched.
In August 2013, a federal judged ruled that New York City’s stop and frisk policy was unconstitutional in its current form. One of the multiple remedies the judge required was that the NYPD implement a trial program whereby one precinct in each borough must have officers wear video cameras. To support the ruling, the judge cited the Rialto study which showed that after body worn cameras were introduced public complaints against officers fell by 88% compared to the prior year and officer’s use of force fell 60%.
The timing of the NYPD pilot program couldn't be more important as the events around Ferguson has thrust on-officer video into the national spotlight. If Taser can secure the NYPD win, the media attention could be tremendous.
Shares of Taser are up 9%.
Taser's smaller competitor Digital Ally (NASDAQ: DGLY) is also sharply higher today (+16.5%), possibly on speculation it too could be tapped for the program.