If you have been watching Trinity Capital stock lately, you are probably wondering if it’s the right time to buy, hold, or lock in some gains. Its recent dips, including a 4.8% drop over the last week and a 9.2% slide in the past month, might be giving investors pause. But step back, and you will see a story with a lot more nuance than short-term price swings suggest. Year-to-date, Trinity is up a modest 0.9%. Looking further out reveals a robust 21.6% climb in the past year and an impressive 82.1% gain over the last three years. For a company operating in a fast-changing lending environment, these are no small feats.

Investors have been recalibrating their expectations as market sentiment swings between risk aversion and…