Reverse splits will allow stocks with low prices to increase in price to make the stock more attractive to investors. The value of the stock is the same. Instead of having more share outstanding, the firm will cut the number of shares which increases the price per share. If stock prices especially fall below one dollar, which may demand a delisting from an exchange, the reverse split will jump the price and provide some protection from the structural issues associated with low prices.
The consolidation of shares does not change value, only the price, but may signal a firm in distress. Stock splits which lower the price of stock should be considered bullish, albeit there is again no change in valuation. Corporate actions do matter, but as a signaling mechanism not a sign of increased valuation. Do not be fooled by reverse splits.
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