Reverse stock splits are typically used by companies to increase their share price, often to comply with exchange listing requirements. While this can be seen as a positive step towards maintaining compliance, it may also be viewed as a sign of underlying issues with the company's performance or market valuation. In the short term, the impact on the stock price can be neutral to slightly positive as the reduced number of shares could lead to a higher price per share. However, investor perception of reverse splits is often negative, as they can be seen as a measure of last resort.