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Universal Safety Products (NYSE:UUU) shares surged 26.14% in premarket trading to $4.15 as of 7:10 AM EDT on Tuesday, following the company’s announcement of a substantial one-time special cash dividend. The building products and equipment company declared a $1.00 per share special dividend, representing more than 20% of the stock’s closing price of $3.30 on Friday.
This significant capital return stems from proceeds generated by the successful sale of assets to Feit Electric Company earlier this year, marking a pivotal moment for shareholders of the small-cap industrial distributor.
Special Dividend Declared by Universal Safety Products After Asset Sale, Triggers Special NYSE Procedures
Universal Safety Products’ Board of Directors approved the one-time special cash dividend of $1.00 per share, with a record date of September 18, 2025, and payment scheduled for September 25, 2025. The dividend represents a direct return of capital to shareholders following the company’s strategic asset sale to Feit Electric Company completed earlier this year.
According to CEO Harvey Grossblatt, while the original plan envisioned a larger dividend tied to full company dissolution, shareholders chose a different path that positions the company for continued growth and prosperity.
The significant size of the dividend – exceeding 20% of the stock price – triggers special NYSE American trading procedures. Shares will trade with “due bills” from September 18 through September 25, meaning shareholders who sell during this period will transfer their dividend rights to buyers.
The company emphasized that buyers and sellers should consult their brokers to understand these due bill procedures, as the obligations are settled between brokers rather than the company directly.
UUU Stock Gains Over 26% in Premarket Trading
Universal Safety Products shares closed Friday at $3.30, down 4.35%, before surging to $4.15 in premarket trading – a gain of $0.86 or 26.14%. The stock has demonstrated remarkable volatility and growth over recent periods, with year-to-date returns of 39.24% significantly outpacing the S&P 500’s 9.84% gain. Over the past year, UUU has delivered exceptional returns of 159.84%, far exceeding the broader market’s 15.53% performance, though the company’s three-year returns remain negative at -15.17%.
The company’s financial profile reflects a small but profitable operation with a market capitalization of $7.63 million and trailing twelve-month revenue of $22.79 million. Key metrics include an attractive trailing P/E ratio of 2.77, diluted EPS of $1.19, and a healthy profit margin of 12.08%.
With total cash of $3.82 million and no significant debt, Universal Safety Products maintains a strong balance sheet position. The company operates in the building products and equipment sector within industrials, distributing safety and security devices through its 56-year heritage of developing innovative, easy-to-install products.
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