Redfin Corp's stock plummeted 5% in the pre-market trading session on Thursday, following Piper Sandler's decision to lower its price target on the company's shares.

Piper Sandler, a renowned investment firm, reduced its price target for Redfin from $7 to $4, citing potential concerns or factors affecting the company's performance. The firm maintained an "Underweight" rating on Redfin's stock, indicating a bearish outlook on the company's prospects.

The significant price target cut by Piper Sandler suggests that analysts have become more pessimistic about Redfin's future growth and profitability. This downgrade in the price target and rating has likely contributed to the sell-off in Redfin's stock, resulting in the observed 5% plummet.