NEW YORK (TheStreet) -- Continental Resources  (CLR - Get Report) stock is down 5.99% to $32.20 in late afternoon trading on Friday due to dropping oil prices.

Oil prices are declining after OPEC failed to reduce its production target at its meeting today, the Wall Street Journal reports. 

Crude oil (WTI) is falling 2.43% to $40.08 per barrel and Brent oil is down 1.62% to $43.13 per barrel this afternoon, according to the index.

"OPEC's moves on Friday mean there is no end in sight for the glut plaguing the crude market," the Journal reports. "Supplies have outstripped demand by as much as 2 million barrels a day at times this year as OPEC, Russia and the U.S. pumped hard in a competition for market share." 

Based in Oklahoma City, Continental Resources is a crude oil and natural gas exploration and production company. 

Separately, TheStreet Ratings team rates CONTINENTAL RESOURCES INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

We rate CONTINENTAL RESOURCES INC (CLR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Along with the very weak revenue results, CLR underperformed when compared to the industry average of 36.7%. Since the same quarter one year prior, revenues plummeted by 58.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for CONTINENTAL RESOURCES INC is currently very high, coming in at 74.79%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, CLR's net profit margin of -12.07% significantly underperformed when compared to the industry average.
  • CONTINENTAL RESOURCES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CONTINENTAL RESOURCES INC increased its bottom line by earning $2.64 versus $2.07 in the prior year. For the next year, the market is expecting a contraction of 107.6% in earnings (-$0.20 versus $2.64).
  • The debt-to-equity ratio of 1.48 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, CLR has a quick ratio of 0.70, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, CONTINENTAL RESOURCES INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • You can view the full analysis from the report here: CLR

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.