Shares of Ryland Homes fell 6 percent Tuesday after an analyst downgraded the stock to “hold” from “buy.”

Kenneth Zener at KeyBanc wrote in a note to investors that even though Ryland’s orders for new homes grew 30 percent in the third quarter, the outlook wasn’t bright.

“We think flat 2012 housing starts limits its valuation upside from here until sustained earnings visibility become more evident,” he wrote.

In its third-quarter filing, released on Oct. 26, Ryland reported a loss of $21 million, or 48 cents per share for the quarter. Those results were better than the same quarter last year, when the company lost $30 million or 68 cents per share.

On the New York Stock Exchange, shares of Ryland closed Tuesday at $12.66, a loss of 86 cents or 6 percent for the day.