Over the last year, a good number of insiders have significantly increased their holdings in Lancaster Colony Corporation (NASDAQ:LANC). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Lancaster Colony

The Last 12 Months Of Insider Transactions At Lancaster Colony

In the last twelve months, the biggest single purchase by an insider was when Independent Director Elliot Fullen bought US$507k worth of shares at a price of US$169 per share. That implies that an insider found the current price of US$176 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Lancaster Colony share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid US$522k for 3.08k shares. On the other hand they divested 1.21k shares, for US$233k. Overall, Lancaster Colony insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Lancaster Colony is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Lancaster Colony Have Bought Stock Recently

Over the last quarter, Lancaster Colony insiders have spent a meaningful amount on shares. Independent Director Elliot Fullen spent US$507k on stock, and there wasn't any selling. That shows some optimism about the company's future.

Insider Ownership Of Lancaster Colony

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Lancaster Colony insiders own about US$1.2b worth of shares (which is 26% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Lancaster Colony Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Lancaster Colony. That's what I like to see! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Lancaster Colony.

Of course Lancaster Colony may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.