First Solar Stock Hits Record High on Acquisition

FSLR options have already more than doubled the average daily volume

Laura McCandless

Deputy Editor

May 12, 2023 at 10:55 AM

FSLR

First Solar Inc (NASDAQ:FSLR) stock is soaring today, after the alternative energy company announced the acquisition of Sweden-based solar cell tech firm Evolar AB for $38 million upfront, and an additional $42 million subject to milestones achieved. At last glance, FSLR was up 19.1% at $218.19, and earlier hit a record high of $222.00.

The options pits are buzzing in response. So far, 42,000 calls and 24,000 puts have been exchanged, which is already 2.7 times the average daily volume. The May 225 call is the most active, with new positions opening there.

First Solar stock is now up roughly 50% since the start of 2023, staging a nice bounce from its 160-day moving average. FSLR may have been overdue for a short-term bounce, per its 14-day relative strength index (RSI) of 26.4, which sits in "oversold" territory.

There's still room for overdue bull notes. Of the 21 analysts in coverage, nine maintain a "hold" or "strong sell" rating. Plus, the 12-month consensus price target of $214.72, meanwhile, is now a 5% discount to current levels.

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