Rheinmetall’s Insiders Bet €6 Million on a Turnaround as the Company Pivots to Pure Defence

Rheinmetall CEO and managers invest €6M in stock near 52-week low, signaling confidence amid defense pivot, €1B contract, and restructuring.

Rheinmetall’s top brass are voting with their wallets. Since the start of May, senior managers including chief executive Armin Papperger have collectively spent over €6 million buying shares in the German defence group, a move that comes as the stock languishes near its 52-week low of €1,099.80, hit in mid-May. Papperger himself stood out with particularly precise timing, market observers note, scooping up equity at a price the leadership clearly considers a bargain. The message from management: order books are full and the valuation is attractive — even if the market remains unconvinced.

The insider buying unfolds against the backdrop of a sweeping corporate overhaul. At the ILA Berlin 2026 air show, which opens this week, Rheinmetall is presenting itself as a near-pure defence contractor for the first time. The centrepiece is the MQ-28 Ghost Bat, an autonomous combat aircraft that has already completed more than 150 test flights and is earmarked for Bundeswehr procurement by 2029. Alongside it, the company is showcasing satellite-based reconnaissance through its Rheinmetall ICEYE Space Solutions joint venture, which recently secured a billion-euro military contract, and the F-35 fuselage centre sections it is producing in Weeze — 400 units in total for Northrop Grumman, with the eighth already in fabrication.

That pivot away from civilian business is now definitive. Rheinmetall has agreed to sell the bulk of its automotive parts division to Munich-based holding group Aequita for €350 million, with the deal expected to close in the fourth quarter. Roughly 6,200 employees will transfer to the new owner, leaving the group with 34,000 staff. The automotive unit had been under pressure from weak demand among European carmakers, while the defence side of the house was growing too fast for the two to remain under one roof. Production lines in Neuss and Spain will be repurposed for satellites and military goods.

The paradox is hard to ignore. Even as new orders roll in — including a Bundeswehr contract worth €1.01 billion — the stock has fallen roughly 40% from its 52-week high of €1,995, reached last September. Year to date, shares are down about 25%, and they currently trade at €1,202. Reviving that confidence will require more than strategy announcements. First-quarter figures for 2026 showed revenue of €1.94 billion, 8% higher than a year earlier but some 15% below analyst expectations. Management pointed to the back-loaded nature of production ramp-ups and contract deliveries, while sticking to its full-year revenue target of €14 billion to €14.5 billion.

Analysts remain broadly constructive. Of 21 experts covering the stock, 18 recommend buying and three say hold, with an average price target of €1,889 — a chunky premium to the current level. Yet the market is waiting for proof that record order intake will translate into sustainable profit growth. The technical picture offers little comfort: the stock sits below both its 50-day moving average of €1,334 and its 200-day of €1,614, while the relative strength index at 41.8 is neutral but far from oversold territory.

Adding to the pressure are broader industry headwinds. Rising energy costs and the threat of supply-chain disruptions tied to geopolitical tensions are weighing on the entire defence sector, as is the industry’s reliance on strategic raw materials such as graphite. For Rheinmetall, the next clear share-price catalyst may come from the bidding war for the Kiel-based German Naval Yards shipyard, where the group is going head-to-head with ThyssenKrupp Marine Systems. Winning that auction would deliver a concrete growth boost to the naval segment — a business area that investors have barely priced in so far.