First Solar 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 should speed up the development of next-generation solar technology, including highly efficient tandem devices, First Solar said in a news release.
First Solar is a maker of photovoltaic, or PV, solar energy modules.
Tandem PV modules will "define the future... allowing us to convert sunlight into clean electricity more efficiently," First Solar Chief Executive Mark Widmar said in the release.
Terms of the agreement were not disclosed.
FSLR Stock, Solar Stocks
Shares of First Solar leapt 26.5% to 231.69 in huge volume 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 posted its highest close since Sept. 19, 2008, when it finished at 241.90.
Among other solar stocks, Array Technologies jumped 16% Friday. NEXTracker surged 11% and Shoals Technologies climbed 5.2%.
First Solar badly missed earnings and revenue estimates in the latest quarter.
The company blamed customer project timing for the first-quarter shortfall.
After Friday's surge, FSLR stock is up 54.7% year to date.
