LHX: record backlog, raised guidance, sector at 52-wk highs & it trades like someone knows something

ITA hit a 52 week high this week. LHX is 23% off its March high. Same sector, opposite directions - the market is bullish defense and singling this name out.

The fundamentals aren't the reason. Q1 revenue +12%, EPS +33% YoY, guidance raised, record $40.7B backlog with another $25B in munitions orders still in negotiation.

What happened is mid June: a bunch of senior execs left at once, and the 8-K gave no reasons and named no successors. Same week, reports of a \~$2B IPO of their missile unit, plus a margin compression story on fixed price DoD contracts. Market decided where there's smoke there's fire.

So the question I keep turning over: how do you actually price governance risk like this? Unexplained departures could mean anything from a comp dispute to something that shows up in an 8-K six months from now. A 23% discount while the sector rips is either fear or information, and I can't tell which.

Ran it through my checklist and it came out borderline - not cheap at \~25x forward, mostly the backlog carrying it. FWIW I took a small long-dated position, half size by rule given the borderline score.

Curious how others here think about exec departures as a signal. Ever traded one?