It’s been a rough year so far for the Bega Cheese Ltd (ASX: BGA) share price. It’s tumbled nearly 39% since the start of 2022. Having started the year trading at $5.60, the stock is currently swapping hands for $3.44.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has dumped around 10%.

But that hasn’t seemingly shaken the confidence of Australia’s second richest person. Andrew ‘Twiggy’ Forrest has continued his campaign to snap up Bega Cheese shares, grabbing another $14.9 million worth.

Let’s take a closer look at what’s been weighing on the Vegemite owner and Twiggy’s growing hold in the company.

Twiggy buys despite falling Bega Cheese share price

The Bega Cheese share price has been impacted by extreme weather in 2022, as rainfall and flooding have forced it to increase farm gate milk prices amid heightened demand.

That will, of course, dint the cheese-focused food producer’s bottom line and has already seen brokers turning their nose up at the stock.

Bell Potter dropped its price target for Bega Cheese shares to $3.80 and slapped it with a hold rating earlier this month after the company revealed it expected milk prices to lift 30% this financial year.

Meanwhile, Goldman Sachs analysts have reportedly placed a sell rating on Bega Cheese. They noted they don’t see any further upside in the stock, according to Livewire.

But that hasn’t discouraged Twiggy. The Fortescue Metals Group Limited (ASX: FMG) founder and chair’s increasing holding in the ASX 200 consumer staples share was revealed last week.

Twiggy began snapping up a substantial holding in Bega Cheese in December. He recently increased his hold in the company to 11.5%, up from 10% in late April.

That saw the billionaire buying around 4.5 million Bega Cheese shares at a total cost of approximately $14.9 million.

The post The Bega Cheese share price is down 39% so far this year but Twiggy is still buying appeared first on The Motley Fool Australia.

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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 positions in and has recommended Goldman Sachs. 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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