Microsoft stock edges lower as Morgan Stanley lifts dividend and targets USD 600

Published on 09/17/2026 at 14:49 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Microsoft stock closed at USD 490.30 on the Nasdaq on September 16, 2026, 1.4 percent below the prior close of USD 497.12 amid broader Fed-driven market pressure. Morgan Stanley kept an Overweight rating and raised its dividend view with a USD 600 price target as of September 16, 2026.

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Microsoft Corporation (ISIN US5949181045) stock closed at USD 490.30 on the Nasdaq on September 16, 2026, down 1.4 percent from the prior close of USD 497.12 and finishing close to an intraday low of USD 487.23 in a volatile session shaped by fresh Federal Reserve signals.

Dividend increase and USD 600 target support valuation

According to TechFlowPost on September 17, 2026, Microsoft has raised its quarterly dividend by 8 percent, while Morgan Stanley maintains an Overweight rating on the stock with a price target of USD 600, set in a research report dated September 16, 2026.

The same breakdown notes that Morgan Stanley’s USD 600 target implies upside of about 20.7 percent versus a current reference price of USD 497.12 on the Nasdaq as of the close on September 15, 2026, underscoring that the bank sees room for further gains despite the recent 1.4 percent pullback to USD 490.30 on September 16, 2026.

Latest fiscal figures show double-digit growth

Recent earnings data indicate that Microsoft’s underlying business continues to grow at a double-digit pace. According to Moomoo, Microsoft reported fiscal fourth-quarter 2026 revenue of USD 90.01 billion, beating an estimate of USD 87.63 billion and marking year-on-year growth of 17.75 percent compared with an estimated 14.64 percent.

The same earnings overview states that fiscal fourth-quarter 2026 net income reached USD 35.77 billion, up 31.33 percent year on year versus an estimated increase of 15.53 percent, reflecting strong profitability even as capital expenditure more than doubled to support AI-related infrastructure and Azure cloud capacity.

For the full fiscal year 2026, Microsoft’s most recent reported figures show revenue rising 18 percent to USD 331.8 billion, while net income surged 31 percent to USD 133.7 billion, according to the FY2026 summary in the Moomoo earnings data dated September 14, 2026.

Analyst consensus and valuation signals remain constructive

Beyond Morgan Stanley’s Overweight stance, broader analyst consensus for Microsoft stock is still clearly positive. As MarketBeat reported on September 17, 2026, data compiled by the portal show that Microsoft currently carries an average rating of Moderate Buy, with a consensus target price of USD 564.27 based on recent coverage from dozens of equity research analysts.

A separate valuation analysis from MarketScreener on September 17, 2026 indicates that analysts’ average target price for Microsoft stands at USD 572.92 compared with a last close of USD 490.30, implying a spread of 16.85 percent and reinforcing the picture of moderate upside in the eyes of the analyst community.

From a quantitative perspective, valuation tools also point to some room for re-rating. According to GuruFocus on September 17, 2026, Microsoft’s current price of USD 490.30 sits roughly 16.2 percent below its proprietary GF Value of USD 585.29 per share, which the service interprets as modest undervaluation for a company it assigns an overall GF Score of 99 out of 100 across profitability, growth and financial strength categories.

Fed-driven volatility and insider-selling headline the risk backdrop

The share-price move to USD 490.30 on September 16, 2026 came against a backdrop of tighter monetary policy and some insider selling. As Seoul Economic Daily reported on September 17, 2026, major US technology names, including Microsoft, lost ground after the latest Federal Reserve rate decision, with Microsoft falling about 1.37 percent in that broader sell-off in large-cap growth stocks.

According to a trading update from MarketBeat dated September 16, 2026, Microsoft’s stock price dropped 1.4 percent during that session following disclosed insider selling, trading as low as USD 487.23 before closing at USD 490.30 compared with a previous close of USD 497.12.

GuruFocus’ analysis notes that insider activity over the past 12 months has been net selling, with insiders disposing of around USD 114.6 million worth of shares versus purchases of roughly USD 2.0 million, according to GuruFocus on September 16, 2026, which some investors may view as a cautionary signal alongside the strong fundamental metrics.

Stock holds near recent lows with double-digit upside to targets

In Nasdaq trading, Microsoft stock last closed at USD 490.30 on September 16, 2026, compared with an earlier closing level of USD 497.12 on September 15, 2026, leaving the shares near the lower end of the recent trading band highlighted by an intraday low of USD 487.23 on September 16, 2026 and implying double-digit percentage upside to both the USD 564.27 consensus target and Morgan Stanley’s USD 600 target if those scenarios materialize.