E! News reported that Pete attended a Netflix party with his pal Machine Gun Kelly, but he quickly caught the actress' eye. After chatting briefly, Pete left the party, but he returned later and reconnected with Kate.
The report claims Kate, 45, and Pete, 25, sat closely together on a couch outside on a smoking patio for about an hour, looking "very cozy."
"She was very flirty with him and there were definitely some vibes going on," a source told E!. "Pete was smiling and laughing with her and she was all about him."
Kelly and one of Kate's friends kept each other company as the "SNL" star chatted with Kate. Once the hourlong conversation was over, Pete and Kate hugged. Her group and Pete's group left the party around the same time.
People magazine also reported on January 7 that the two "talked intently for most of the night."
Both People magazine and E! were quick to point out that Pete and Kate did not go home together.
Pete has been single since he and Ariana Grande split and called off their engagement in October 2018. A source told E! News in early December that the comedian was "dating again."
Kate was last linked to 23-year-old comedian/actor Matt Rife.