Over the last year, a good number of insiders have significantly increased their holdings in Australian Agricultural Company Limited (ASX:AAC). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Australian Agricultural

Australian Agricultural Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Bryan Glinton bought AU$11m worth of shares at a price of AU$1.86 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$1.50). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Australian Agricultural insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Australian Agricultural Have Bought Stock Recently

Over the last quarter, Australian Agricultural insiders have spent a meaningful amount on shares. insider John Andrew Forrest spent AU$9.8m on stock, and there wasn't any selling. That shows some optimism about the company's future.

Does Australian Agricultural Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Australian Agricultural insiders own 73% of the company, currently worth about AU$656m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.