First Solar (FSLR) announced it will acquire Evolar AB for up to $80 million. FSLR stock rocketed above a resistance level, lifting other solar stocks as well.
Sweden’s Evolar develops thin film used in solar panels. The acquisition is expected to speed up the development of next-generation photovoltaic, or PV, technology, First Solar said in a news release. That includes the development of high-efficiency tandem devices.
First Solar is a maker of PV solar energy modules.
“We anticipate that high efficiency tandem PV modules will define the future, speeding up decarbonization by allowing us to convert sunlight into clean electricity more efficiently,” First Solar Chief Executive Mark Widmar added.
Terms of the agreement were not disclosed.
FSLR Stock, Solar Stocks
Shares of First Solar leapt 27% to 226.91 on the stock market today. FSLR stock cleared resistance around 220 and regained its 50-day moving average for the first time since late April.
FLSR stock is far extended from a prior breakout past a buy point of 185.38, according to IBD MarketSmith charts.
But it was the best performer on the S&P 500 index Friday. FSLR stock is on track for the highest close since Sept. 19, 2008, when it finished at 241.90.
First Solar badly missed earnings and revenue estimates in the latest quarter.
The company blamed customer project timing for the first-quarter shortfall.
Year to date, FSLR stock is now up more than 50%.
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