Web browser maker Opera hit a high note on Friday after the company announced a shareholder dividend program. Opera stock notched a record high on the news.
The Oslo, Norway-based company said Thursday that it plans to initiate a recurring cash dividend program. The first semiannual dividend under the plan will be 40 cents per American depositary share, payable to shareholders of record as of the close of business on June 30.
"Opera has a proven track record of driving profitable growth, and we remain disciplined in generating healthy cash flows," Opera co-Chief Executive Lin Song said in a news release. "Establishing a regular, recurring dividend enables Opera to continue sharing the benefits of a scaling business with its shareholders."
Opera stock has risen sharply this year on the company's improved profitability and its rapid pace of innovation in web browsers and internet services.
Opera Stock Advances
In intraday trading on the stock market today, Opera stock hit an all-time high of 21.75. It ended the regular session up 0.3% to 20.80. Opera went public in July 2018 with its shares priced at $12.
TD Cowen analyst Lance Vitanza reiterated his outperform rating on Opera stock on Thursday. He also raised his price target to 23 from 19.
Opera's dividend program signals increased confidence in the company's growth plans, Vitanza said in a note to clients. The move also will broaden the appeal of Opera stock, he said.
Opera makes web browsers for personal computers and mobile devices. It also is a player in digital content discovery and recommendation platforms.
Lately Opera has been focused on adding artificial intelligence functions to its browsers. On May 24, Opera introduced Aria, a new browser AI. Aria is the product of a collaboration between Opera and startup OpenAI.
In March, Opera went live with generative AI tools in its desktop browsers. Those browser features include contextual AI prompts and sidebar integration of popular services ChatGPT and ChatSonic.
Opera stock sports a best-possible IBD Composite Rating of 99, according to IBD Stock Checkup. Further, it is on the IBD Tech Leaders list.
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