Down 40% so far in 2022, this ASX 200 stock is being gobbled up by 2 directors

Bega Cheese shares appear to be a tasty option for these insiders…

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Key points
  • It's been a rough year for the share price of ASX 200 consumer staples favourite Bega Cheese
  • It's tumbled 40% year to date to trade at $3.34 today
  • Insiders appear to have taken advantage of its fall this week, with two of the company's directors bolstering their holding in the stock

This year has been turbulent for the Bega Cheese Ltd (ASX: BGA) share price, to say the least. But insiders appear to believe things could improve for the S&P/ASX 200 Index (ASX: XJO) consumer staples stock.

Right now, the Bega Cheese share price is $3.34. That's 40% lower than it was at the start of 2022. For comparison, the ASX 200 has dropped 4% year to date.

The tumble might have put the stock in the buy zone, though. At least, that appears to be the belief of two of the company's directors.

They've snapped up a total of $30,000 worth of Bega Cheese shares on-market in recent days.

Let's take a look at the insider buying going down at the producer of dairy and food products.

Three young women sit side by side each holding large hamburgers with the lot skewered with bamboo sticks in their two hands with wide, happy smiles on their faces as they look at their hamburgers just before they are about to tuck into them.

Image source: Getty Images

Embattled ASX 200 share Bega Cheese gets insider love

The Bega Cheese share price has taken a tumble, and some of its directors have taken advantage.

Two directors – Terry O'Brien and Harper Kilpatrick – have bolstered their holdings in the company this week.

The buying went down on Monday.

Then, Kilpatrick snapped up 7,000 Bega shares on-market for $23,540. That equates to around $3.36 apiece.

Meanwhile, O'Brien bought 2,000 stocks in the ASX 200 company, paying a total of $6,759.55. That equals around $3.38 apiece.

Following their latest buys, Kilpatrick holds around 30,000 Bega Cheese stocks and O'Brien boasts approximately 26,700.

Interestingly, it's been less than a month since the company revealed its deputy chair Peter Margin purchased 10,786 Bega Cheese shares for $35,162.36.

That was the best buy of the lot, with each stock being snapped up for around $3.17.

That's just 5 cents off the Bega Cheese share price's nine-year low of $3.12 reached on 21 October. Fortunately, the stock has since recovered 8%.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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