Key Insights

• Insiders appear to have a vested interest in Australian Agricultural's growth, as seen by their sizeable ownership

• 52% of the company is held by a single shareholder (Bryan Glinton)

• Recent purchases by insiders

To get a sense of who is truly in control of Australian Agricultural Company Limited (ASX:AAC), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 72% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

Notably, insiders have bought shares recently. This could signal that stock prices could go up and insiders are here for it.

Let's take a closer look to see what the different types of shareholders can tell us about Australian Agricultural.

Check out our latest analysis for Australian Agricultural

What Does The Institutional Ownership Tell Us About Australian Agricultural?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Australian Agricultural already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Australian Agricultural's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Australian Agricultural. Looking at our data, we can see that the largest shareholder is Bryan Glinton with 52% of shares outstanding. This implies that they have majority interest control of the future of the company. With 18% and 1.9% of the shares outstanding respectively, John Andrew Forrest and The Vanguard Group, Inc. are the second and third largest shareholders.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Australian Agricultural

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.