Key Insights

• Australian Agricultural's significant insider ownership suggests inherent interests in company's expansion

• The largest shareholder of the company is Bryan Glinton with a 53% stake

• Insiders have bought recently

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 75% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And looking at our data, we can see that insiders have bought shares recently. This could signal that stock prices could go up and insiders are here for it.

In the chart below, we zoom in on the different ownership groups of Australian Agricultural.

View 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.

We can see that Australian Agricultural does have institutional investors; and they hold a good portion of the company's stock. 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.

We note that hedge funds don't have a meaningful investment in Australian Agricultural. Bryan Glinton is currently the company's largest shareholder with 53% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 21% and 2.0% of the stock.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Australian Agricultural

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.