One company I had lots of shares in did an RS - I forget the ratio, but it was not that large, maybe 1 for 4. Right after the RS, as soon as shares were tradeable (they are restricted until all shares are recalled, then new ones issued), many people sold to get the cash from the new higher price. But that in turn dropped the share price (because they sell at market), and thus every shareholder loses money. In this case, the share price dropped almost to the pre-split price, which meant that those that kept their shares had lost about 75% of their holdings. I had sold half and kept half, not knowing in advance what would happen.
Unfortunately, that was followed in 6 months with another RS, which essentially wiped everybody out.
Their stock is now at 0.0000112. ICLD. At one point, it was $0.09+.
I will never hold through another RS. I will sell before, wait at least 30 days for things to settle out, and decide whether to buy back in or not. At worst, it will cost me a little if things improve. At best, I won't lose anything by not being in it.
Most RS's are terrible for shareholders, meaning most of the time shareholders lose.
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