Susie Lee, a member of the House of Representatives from Nevada’s 3rd District, continues to reap big gains from her suspicious bet on German defense giant Rheinmetall AG (ETR: RNMBY).
To recap, the lawmaker bought a stake in the company on May 10, 2024, purchasing the stock for between $1,001 and $15,000.
At the time, RNMBY was trading at around $608 and has since spiked to $1,664, a 187.56% increase on her initial investment. In comparison, the S&P 500 has recorded a modest 1.08% gain over the same period.
Notably, Lee a member of the House subcommittee on Defense, has not sold her RNMBY shares, which adds to the suspicion surrounding the Congress trade, especially as she has been actively offloading other holdings. In 2025 alone, the lawmaker has sold stocks worth $267,000, liquidating nearly all her other positions.
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Drivers of Rheinmetall stock rally
Rheinmetall AG has seen its stock surge as demand for military equipment climbs amid rising geopolitical tensions and a renewed focus on European defense.
The rally follows the EU’s €150 billion “Rearm Europe” initiative, announced on March 4, which aims to boost defense spending without straining national budgets. As Germany’s leading arms manufacturer, Rheinmetall is well-positioned to benefit from the surge in funding.
Investor confidence in the equity was further fueled by concerns over a potential U.S. pullback from Ukraine, prompting the EU to ramp up self-reliance. Rheinmetall is already landing major contracts and exploring joint production projects with Ukraine, signaling strong growth prospects ahead.
In general, Europe’s rearmament push could drive billions of dollars in defense contracts to Rheinmetall. However, some caution is needed, as there are concerns about the stock’s ability to sustain its price growth in the long term.
To this end, Rheinmetall’s broad portfolio, ranging from military vehicles to advanced weapons systems, gives it an edge in Europe’s defense strategy.
Featured image via Shutterstock
