NeuroMetrix Inc. (NSDQ:NURO) launched its one-for-six stock split this morning in order to hike its stock value up above $1 after shares closed at 35 cents last Friday, August 26.

NeuroMetrix now has 3.9 million outstanding shares and the company is above the $1 share price necessary to remain listed on the Nasdaq market. Shares traded at $2.19 this morning.

Companies typically use a reverse split to raise the price of outstanding shares because management thinks the stock is undervalued. The move enables a company to reduce the number of outstanding shares, thereby increasing their price. 

The Waltham, Mass.-based company initially considered a reverse stock split in April, when shares were going around 50 cents each, which was still higher than its 52-week low at 43 cents reached in March.

NeuroMetrix is a former Wall Street high flier that’s come back to earth in a big way. Since hitting a high-water mark of $39.35 per share in August 2006, the company’s stock has plummeted steadily since August 2010.

The company managed to narrow losses on sinking sales in its second quarter 2011. NeuroMetrix posted $2.6 million in sales, a 33 percent decrease from the $3.9 million sold during the same period last year, but narrowed losses to $2.4 million, or 11 cents per diluted share, during the three months ended June 30, 46 percent less lost compared to the $4.5 million, or $2.00 per diluted share, lost during Q2 2010.

Shares will run under ticker symbol NUROD for 20 days, beginning today, to designate its post-reverse split.