Rheinmetall Stock: Record High Precedes Profit-Taking

Rheinmetall shares reached unprecedented heights Monday, briefly surpassing €1,400 before retreating. The stock climbed to a record €1,406.50 in morning trading amid optimism surrounding Germany's upcoming defense spending legislation, which would exempt military expenditures exceeding 1% of GDP from debt brake restrictions. However, profit-taking and news that Rheinmetall had withdrawn from negotiations to acquire ThyssenKrupp's marine division caused the stock to close down nearly 2% at €1,343. Despite this single-day pullback, the defense manufacturer has delivered remarkable performance for investors, gaining over 120% year-to-date as Germany prepares to significantly increase military funding.

Defense Sector Rally Continues

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Sollten Anleger sofort verkaufen? Oder lohnt sich doch der Einstieg bei Rheinmetall?

While Rheinmetall experienced a momentary pause in its upward trajectory, the broader German defense sector maintained positive momentum. HENSOLDT shares rose 1.3-3.4%, approaching record levels, while RENK demonstrated exceptional strength with gains between 5-6.6%. The legislative package, expected to pass with a two-thirds majority in Tuesday's Bundestag vote followed by Bundesrat approval Friday, has created what market experts describe as a "new chapter" for defense companies. Analysts remain optimistic about Rheinmetall's prospects despite the recent consolidation, forecasting a dividend increase to €7.66 compared to last year's €5.70, with the company well-positioned to benefit from sustained military spending.