As previously reported, Seaport Global analyst Mark Weintraub downgraded KB Home to Neutral from Buy following what he called a "strong run in the stock." While he thinks the indications on housing activity should continue to be bullish, especially for the next six months "or so," Weintraub also believes today's strong orders will "likely bring along challenges tomorrow" and it could become harder for homebuilding stocks in general to trade higher as investors grow concerned about risk to margins. He recommends lightening exposure to the space and calls out KB as the highest beta and most financially leveraged of the homebuilders he covers.